 CONSIDERATIONS REGARDING THE SPECIFIC ELEMENTS OF THE REPURCHASE AGREEMENT (REPO)Bujorel Florea ()
Perspectives of Law and Public Administration, 2014, vol. 3, issue 1, 120-129 Abstract: The current article focuses on the specific elements of the repurchase agreement, as they are regulated in the new Civil Code (Law no. 287/2009). In the beginning the author makes a general characterization of this type of contract, from the perspective of the specific elements regarding the contracting parties, the object of the contract and the moment of fulfilling certain obligations assumed by the parties. Then, the study defines the notions of “repo” and “reverse repo” and differentiates the repurchase agreement (repo) from other similar contracts, configuring thus more clearly the analyzed convention. A specific element of the contract is represented by its legal nature of sui-generis contract, which the author explains by the fact that in the doctrine there is no unanimous opinion concerning this aspect. At the same time, the specificity of the repo is highlighted by presenting its main effects: the double transfer of property, the transmission of the accessory rights, the original buyer’s obligation to exercise his option, and the original seller’s obligations to make available for the original buyer the funds necessary for exercising the right of option and for making the payment. Last but not least, the specificity of this type of contract is revealed through reflecting the differences between the liquidation, prorogation and renewal of the debated convention. The study presents the viewpoints expressed in the literature, as well as the author’s opinions as regards the controversial legal problems in the studied field. Keywords: repurchase agreement (repo); reverse repo; the original seller; the original buyer; immediate payment; settled sum; financial instruments and/or securities; obligation to exercise the option; liquidation, prorogation and renewal of the repo. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sja:journl:v:3:y:2014:i:1:p:120-129 Access Statistics for this article More articles in Perspectives of Law and Public Administration from Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences) Contact information at EDIRC. |
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