CONSIDERATIONS REGARDING THE SPECIFIC ELEMENTS OF THE REPURCHASE AGREEMENT (REPO)
CONSIDERATIONS REGARDING THE SPECIFIC ELEMENTS OF THE REPURCHASE AGREEMENT (REPO)

Summary/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.

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