Repurchase Agreements

Is anyone familiar with repurchase agreements that would be willing to assist me?

What are your questions?

We are wanting to set up an RA with a customer who has an excess of funds with our FI. The amount over the FDIC insurable amount we would like to do an RA for. Our questions are "how do we even start such a process, where can I find a sample of an agreement, does an attorney need to draw up the contract" Oh my, where to begin!!!

There is a lot to RA's including segregation of securities to secure the agreement, confirmation notices, etc. If you are talking about setting this up for one customer, unless you are talking A LOT of money, it's most likely not going to be worth it.

I would say, yes it is ALOT of money and is probably worth it.
How complicated is this and would you be willing to share your wisdom. kkulick@merchantskittanning.com Thank you soooo much

Here's the best place to start:

Try this, I'm not sure who your regulator is, but there are some other references in this OTS section out of their activities handbook. Best I could do:

OTS - Government Securities Act

Kari,
I will email you a sample repurchase agreement. You need to be very careful about the securities you purchase. If you don't use municipal securities they are subject to Reg D and you need to do daily confirmations.

My deepest thanks goes to both of you. We are regulated by the OCC and we have also contacted them. I will check out the OTS (I was looking at the SEC) and I will check out the sample agreement. Have a great day, I know you two have made my day a little easier. Thanks again!

This may help you also

Overnight Hold-In-Custody Repurchase Transactions