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Financial institutions regularly engage in short-term secured lending transactions to manage liquidity and generate returns. The Overnight Reverse Repurchase Agreement, governed by German law, provides a legally robust framework for these transactions, where one party agrees to purchase securities from another party with a commitment to sell them back the next business day at a predetermined price. This document is essential for financial institutions operating in German markets, incorporating specific requirements from German banking regulations, securities laws, and EU directives. It includes detailed provisions for collateral management, pricing mechanisms, default procedures, and operational requirements, ensuring clarity and legal certainty for all parties involved. The agreement is particularly relevant in the context of German financial market operations and must comply with both domestic and European regulatory requirements.

1. Parties: Identification of the parties entering into the agreement, including full legal names, registration details, and addresses

2. Background: Context of the agreement, establishing the parties' intentions to enter into reverse repurchase transactions

3. Definitions: Key terms used throughout the agreement, including financial, operational, and legal terminology specific to repo transactions

4. Scope and Application: Overview of the agreement's coverage and how it applies to individual transactions

5. Purchase and Repurchase Obligations: Core provisions detailing the mechanics of the repo transactions, including purchase price, repurchase price, and timing

6. Margin Maintenance: Requirements for maintaining collateral value and procedures for margin calls

7. Income Payments: Treatment of income received on purchased securities during the transaction period

8. Payment and Transfer: Mechanics of executing payments and securities transfers

9. Representations and Warranties: Standard legal declarations by both parties regarding their capacity and authority

10. Events of Default: Circumstances constituting default and consequences thereof

11. Termination: Provisions for early termination and close-out procedures

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes