Legal Definition and Related Resources of Repurchase Agreement

In relation to conditional sales contracts, an endorsement on the contract allowing the conditional vendor to sell the contract to a finance company with understanding that in the event of default by conditional purchaser , the conditional vendor will repurchase notes of finance company for amount stated in face of note, less installments paid if any , less unearned insurance premiums and less unearned finance charges . See Ballinger v Delta Loan and Finance Co., 277 S. W.2d 368, 197 Tenn. 661.

An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it represents a collateralized short-term loan, where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser (customer) perspective, the deal is reported as a reverse Repo.

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Repurchase Agreement in Historical Law

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Repurchase Agreement (Repos) Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Repurchase Agreement (Repos) in a way that is easy for anybody to understand: Agreement whereby an institution purchases SECURITIES under a stipulation that the seller will repurchase the securities within a certain time period at a certain price.