2022 Trust Examiner School - Presentations

Internal Use Only

Repurchase Agreements Repurchase Agreement: As applicable to trust departments, means a "loan" by a trust account to a financial institution or securities dealer. Normally, these loans are secured by U. S. Government or agency securities, bear a fixed rate, are payable at a fixed maturity, and may be subject to other terms. The regulatory agencies have generally taken the position that repurchase agreements with the fiduciary bank are a conflict of interest and self-dealing unless specifically authorized. Also sometimes called reverse repurchase agreements, repo, asset repo, RP, and buy back.

https://www.fdic.gov/regulations/examinations/trustmanual/appendix_h/appendix_h.html

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Internal Use Only

Repurchase Agreements

Sample Repurchase Agreement Transaction

https://www.financialresearch.gov/working-papers/files/OFRwp-2015-22_Repo-Arbitrage.pdf

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