Template:Nutshell GMRA BSA 3: Difference between revisions

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{{gmraprov|BSA 3}} '''[[Initiation; Confirmation; Termination (Buy/Sellback Annex) - GMRA Provision|Initiation; Confirmation; Termination]]''' <br>
{{gmraprov|BSA 3}} '''[[Initiation; Confirmation; Termination (Buy/Sellback Annex) - GMRA Provision|Initiation; Confirmation; Termination]]''' <br>
(a) Each {{gmraprov|Transaction}} shall be identified at the time it is entered into and in the {{gmraprov|Confirmation}} relating to it as either a {{gmraprov|Repurchase Transaction}} or a {{gmraprov|Buy/Sell Back Transaction}}. <br>
(a) '''Designation''': The parties will identify whether a {{gmraprov|Transaction}} is a {{gmraprov|Repurchase Transaction}} or a {{gmraprov|Buy/Sell Back Transaction}} at the time of trading it, and will specify that in the {{gmraprov|Confirmation}}. <br>
(b) In the case of a {{gmraprov|Buy/Sell Back Transaction}} the {{gmraprov|Confirmation}} delivered in accordance with paragraph {{gmraprov|3}} of the {{gmraprov|Agreement}} may consist of a single document in respect of both of the transactions which together form the {{gmraprov|Buy/Sell Back Transaction}} or separate {{gmraprov|Confirmation}}s may be delivered in respect of each such transaction. Such {{gmraprov|Confirmation}}s may be in the form of Annex Il to the Agreement except that, subject to sub-paragraph (c) below, such Confirmations shall not include the item specified in paragraph 10 of Annex ll. <br>
(b) '''Form of Confirmation''': The {{gmraprov|Confirmation}} for a {{gmraprov|Buy/Sell Back Transaction}} may be a single document covering both transactions of the {{gmraprov|Buy/Sell Back Transaction}}, or separate {{gmraprov|Confirmation}}s for each transaction. The {{gmraprov|Confirmation}}s may be in the form of {{gmraprov|Annex II}} (except item 10, because the {{gmraprov|Transaction}} will not be terminable on demand). <br>
(c) When entering into a {{gmraprov|Buy/Sell Back Transaction}} the parties shall also agree the {{gmraprov|Sell Back Price}} and the {{gmraprov|Pricing Rate}} to apply in relation to that {{gmraprov|Transaction}} on the scheduled {{gmraprov|Repurchase Date}}. The parties shall record the {{gmraprov|Pricing Rate}} in at least one {{gmraprov|Confirmation}} applicable to that {{gmraprov|Buy/Sell Back Transaction}}. <br>
(c) '''{{gmraprov|Sell Back Price}}''': In a {{gmraprov|Buy/Sell Back Transaction}} the parties must also agree and record in a {{gmraprov|Confirmation}} the {{gmraprov|Sell Back Price}} and the {{gmraprov|Pricing Rate}} that will apply on the {{gmraprov|Repurchase Date}}.<br>
(d) {{gmraprov|Buy/Sell Back Transaction}}s shall not be terminable on demand. <br>
(d) '''No termination on demand''': {{gmraprov|Buy/Sell Back Transaction}}s may not be terminated on demand. <br>
(e) In the case of a {{gmraprov|Buy/Sell Back Transaction}}, the {{gmraprov|Purchase Price}} shall be quoted exclusive of {{gmraprov|Accrued Interest}} to the {{gmraprov|Purchase Date}} on the {{gmraprov|Purchased Securities}} and the {{gmraprov|Sell Back Price}} shall be quoted exclusive of {{gmraprov|Accrued Interest}}. <br>
(e) '''Exclusion of Accrued Interest''': The {{gmraprov|Purchase Price}} and the {{gmraprov|Sell Back Price}} in a {{gmraprov|Buy/Sell Back Transaction}} will both be quoted exclusive of {{gmraprov|Accrued Interest}}. <br>
(f) For the purposes of paragraph {{gmraprov|3(c)}} of the {{gmraprov|Agreement}}, in the case of a {{gmraprov|Buy/Sell Back Transaction}}, the {{gmraprov|Purchased Securities}} shall be transferred to {{gmraprov|Buyer}} or its agent against the payment of the {{gmraprov|Purchase Price}} plus an amount equal to {{gmraprov|Accrued Interest}} to the {{gmraprov|Purchase Price}} on such {{gmraprov|Purchased Securities}}. <br>
(f) '''Initial settlement''': Under paragraph {{gmraprov|3(c)}} of the {{gmraprov|Agreement}}, for a {{gmraprov|Buy/Sell Back Transaction}}, the {{gmraprov|Seller}} will transfer {{gmraprov|Purchased Securities}} to {{gmraprov|Buyer}} against the payment of the {{gmraprov|Purchase Price}} plus {{gmraprov|Accrued Interest}}. <br>
(g) In the case of a {{gmraprov|Buy/Sell Back Transaction}}, paragraph {{gmraprov|3(f)}} of the {{gmraprov|Agreement}} shall not apply. Termination of such a {{gmraprov|Transaction}} will be effected on the {{gmraprov|Repurchase Date}} by transfer to {{gmraprov|Seller}} or its agent of {{gmraprov|Equivalent Securities}} against the payment by {{gmraprov|Seller}} of (i) in a case where the {{gmraprov|Repurchase Date}} is the date originally scheduled by the parties pursuant to paragraph {{gmraprov|3(b)(iii)}} of the {{gmraprov|Agreement}}, the {{gmraprov|Sell Back Price}} referred to in paragraph [[BSA 2 - GMRA Provision|2(iii)(x)]] of this Annex plus an amount equal to {{gmraprov|Accrued Interest}} to the {{gmslaprov|Repurchase Date}}; and (ii) in any other case, the {{gmraprov|Sell Back Price}} referred to in paragraph [[BSA 2 - GMRA Provision|2(iii)(y)]] of this [[Buy/Sellback Annex - GMRA Provision|Annex]]. <br>
(g) '''Termination settlement''': Paragraph {{gmraprov|3(f)}} of the {{gmraprov|Agreement}} will not apply. Instead, a {{gmraprov|Buy/Sell Back Transaction}} will terminate on the {{gmraprov|Repurchase Date}} by transfer to {{gmraprov|Seller}} of {{gmraprov|Equivalent Securities}} against the payment by {{gmraprov|Seller}} of:
:(i) where the {{gmraprov|Repurchase Date}} is the originally scheduled date, the {{gmraprov|Sell Back Price}} described in paragraph [[BSA 2 - GMRA Provision|2(iii)(x)]] of this Annex plus {{gmraprov|Accrued Interest}} to the {{gmslaprov|Repurchase Date}}; and  
:(ii) in any other case, the {{gmraprov|Sell Back Price}} referred to in paragraph [[BSA 2 - GMRA Provision|2(iii)(y)]] of this [[Buy/Sellback Annex - GMRA Provision|Annex]]. <br>

Latest revision as of 10:12, 1 June 2022

BSA 3 Initiation; Confirmation; Termination
(a) Designation: The parties will identify whether a Transaction is a Repurchase Transaction or a Buy/Sell Back Transaction at the time of trading it, and will specify that in the Confirmation.
(b) Form of Confirmation: The Confirmation for a Buy/Sell Back Transaction may be a single document covering both transactions of the Buy/Sell Back Transaction, or separate Confirmations for each transaction. The Confirmations may be in the form of Annex II (except item 10, because the Transaction will not be terminable on demand).
(c) Sell Back Price: In a Buy/Sell Back Transaction the parties must also agree and record in a Confirmation the Sell Back Price and the Pricing Rate that will apply on the Repurchase Date.
(d) No termination on demand: Buy/Sell Back Transactions may not be terminated on demand.
(e) Exclusion of Accrued Interest: The Purchase Price and the Sell Back Price in a Buy/Sell Back Transaction will both be quoted exclusive of Accrued Interest.
(f) Initial settlement: Under paragraph 3(c) of the Agreement, for a Buy/Sell Back Transaction, the Seller will transfer Purchased Securities to Buyer against the payment of the Purchase Price plus Accrued Interest.
(g) Termination settlement: Paragraph 3(f) of the Agreement will not apply. Instead, a Buy/Sell Back Transaction will terminate on the Repurchase Date by transfer to Seller of Equivalent Securities against the payment by Seller of:

(i) where the Repurchase Date is the originally scheduled date, the Sell Back Price described in paragraph 2(iii)(x) of this Annex plus Accrued Interest to the Repurchase Date; and
(ii) in any other case, the Sell Back Price referred to in paragraph 2(iii)(y) of this Annex.
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