Repos

This overview is a guide to the Banking & Finance content within the Repos subtopic, with links to appropriate materials.

Repurchase transactions, known as 'repos' are financial arrangements which are used in the international financial markets by financial institutions and corporate bodies. They use industry standard documentation published by the Securities Industry and Financial Markets Association (SIFMA) and the International Capital Markets Association (ICMA).

Repos—repurchase transactions

Structure of a repo transaction

A repo (the market term for 'repurchase transaction') is a type of financial instrument that involves the sale of an asset by one party (the 'seller') to another party (the 'buyer') with a simultaneous agreement between the parties that the seller will repurchase the asset from the buyer at a future date for a specified price.

Strictly speaking, any asset that is capable of being transferred from one person

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High Court clarifies position of sole directors under Model Articles and the interaction between UK sanctions regulations and in-court appointment of administrators (Re KRF Services (UK) Ltd and others)

Restructuring & Insolvency analysis: This High Court case (which addresses two important issues in UK company law and sanctions regulations) will be of interest to insolvency practitioners, corporate and restructuring lawyers, sanctions lawyers, and businesses and individuals which are affected by sanctions. Firstly, it clarifies the position of sole directors under the Model Articles for private limited companies. The court ruled that a sole director can validly pass board resolutions and bind the company, regardless of whether they have always been the sole director or were previously part of a multi-member board. This interpretation resolves conflicts between Article 7(2) and Article 11(2) of the Model Articles, with the court favouring Article 7(2)'s provisions. Secondly, the case examines the interaction between UK sanctions regulations and the in-court appointment of administrators. The court determined that making an administration application and order does not breach asset-freezing sanctions, even when the company is designated or controlled by a sanctioned person. While an Office of Financial Sanctions Implementation (OFSI) license is typically required for administrators to act, the court retains discretion to make immediate appointments in urgent situations. Written by Joshua Ray and Duncan Henderson, partners at CANDEY, which acted for the applicants on this matter.

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