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Bond Repurchase Agreement for Singapore

Bond Repurchase Agreement Template for Singapore

A Bond Repurchase Agreement under Singapore law is a specialized financial contract where one party sells securities to another with a simultaneous agreement to repurchase them at a later date for a specified price. The agreement operates within Singapore's robust financial regulatory framework, particularly under the Securities and Futures Act and MAS guidelines. It includes detailed provisions for transfer mechanics, margin maintenance, and default scenarios, while incorporating specific requirements of Singapore's financial markets infrastructure.

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What is a Bond Repurchase Agreement?

The Bond Repurchase Agreement is a critical instrument in Singapore's financial markets, used for short-term financing and liquidity management. It enables parties to execute secured financing transactions while maintaining compliance with Singapore's regulatory requirements, including MAS Guidelines and the Securities and Futures Act. The agreement details the terms of the initial sale, the commitment to repurchase, pricing mechanisms, margin requirements, and risk management provisions. This document type is particularly important in Singapore's role as a major financial center, where repo transactions form a significant part of the money market operations.

What sections should be included in a Bond Repurchase Agreement?

1. Parties: Identification and details of the buyer and seller

2. Background: Context and purpose of the repo agreement

3. Definitions: Key terms used throughout the agreement

4. Purchase and Sale: Core terms of the initial sale and agreement to repurchase

5. Price and Payment Terms: Purchase price, repurchase price, and payment mechanics

6. Securities Transfer: Mechanics for transfer of securities

7. Margin Maintenance: Requirements for maintaining collateral value

8. Events of Default: Circumstances constituting default and consequences

What sections are optional to include in a Bond Repurchase Agreement?

1. Income Payments: Treatment of income on securities during repo term - used when securities may generate income during the repo period

2. Substitution: Rights to substitute securities - used when parties want flexibility to exchange collateral

3. Buy-in: Procedures for buying in securities if seller fails to deliver - used in markets where buy-in procedures are common

What schedules should be included in a Bond Repurchase Agreement?

1. Form of Confirmation: Template for confirming individual transactions

2. Eligible Securities: List of acceptable securities for repo transactions

3. Margin Percentages: Agreed haircuts and margin requirements

4. Address for Notices: Contact details for formal communications

5. Agency Terms: Additional terms for agency transactions when one party acts as agent

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions







































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Industries

Securities and Futures Act (SFA): Primary legislation governing securities trading, clearing, and market operations in Singapore. Essential for repo transactions as they involve securities trading.

Companies Act: Fundamental legislation governing corporate entities in Singapore, relevant for understanding counterparty capabilities and corporate authority.

Banking Act: Regulates banking institutions in Singapore, particularly relevant when banks are counterparties in repo transactions.

Monetary Authority of Singapore Act: Establishes MAS's regulatory authority and oversight of financial institutions and markets.

MAS Guidelines on Repo Transactions: Specific regulatory guidance from MAS on the conduct of repo transactions in Singapore.

MAS Notice 757: Specific notice dealing with repos for banks, providing detailed requirements for banking institutions.

SGX Rules and Regulations: Exchange rules relevant when repo transactions involve listed securities on the Singapore Exchange.

Securities and Futures (Clearing of Derivatives Contracts) Regulations: Regulations governing the clearing of derivatives contracts, which may be relevant for structured repo transactions.

Securities and Futures (Reporting of Derivatives Contracts) Regulations: Reporting requirements for derivatives contracts, which may apply to certain repo transactions.

Insolvency, Restructuring and Dissolution Act 2018: Key legislation governing insolvency scenarios, critical for understanding default and closeout provisions in repo agreements.

Global Master Repurchase Agreement (GMRA): International standard agreement for repo transactions, often used as a base template in Singapore.

Income Tax Act: Tax legislation relevant for understanding the tax treatment of repo transactions in Singapore.

Stamp Duties Act: Legislation governing stamp duties that may be applicable to repo documentation and transfers.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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