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This Reverse Repurchase Agreement template is designed for use in the United Arab Emirates, complying with UAE federal laws and Central Bank regulations. It is primarily used when financial institutions need to enter into short-term secured lending arrangements, where securities are transferred as collateral with a commitment to repurchase. The document includes essential provisions for securities transfer, pricing mechanisms, margin maintenance, and default scenarios, while incorporating specific UAE regulatory requirements. It can be adapted for both conventional and Islamic finance structures, making it versatile within the UAE's dual financial system. The agreement is particularly relevant for liquidity management, monetary policy operations, and short-term financing arrangements between UAE-based financial institutions.

1. Parties: Identification of the parties entering into the agreement (Seller and Buyer)

2. Background: Context of the agreement and general intention of the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Repurchase: Core transaction terms including initial sale and agreement to repurchase

5. Purchase Price and Pricing Rate: Specification of the purchase price, repurchase price, and pricing rate calculations

6. Transfer of Securities: Procedures and requirements for the transfer of securities

7. Margin Maintenance: Requirements for maintaining margin, including margin calls and threshold amounts

8. Income Payments: Treatment of income or distributions on the purchased securities during the transaction

9. Payment and Transfer: Mechanics of payments and securities transfers

10. Representations and Warranties: Standard and transaction-specific representations and warranties

11. Events of Default: Definition of events of default and consequences

12. Set-off Rights: Rights of set-off and netting provisions

13. Tax Provisions: Treatment of taxes and tax-related obligations

14. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction provisions