Chapter I: Definition and general rules

A repurchase agreement is a transaction whereby a legal entity, a unit trust, a real estate investment trust, a professional real estate investment trust, a specialised financing fund or a securitisation fund transfers full ownership of financial securities to another legal entity, a unit trust, a real estate investment trust, a professional real estate investment trust or a securitisation fund for an agreed price, to another legal entity, a fonds…

The repurchase agreement relates to financial securities which are not likely to be the subject, throughout the duration of the transaction, of : 1. The detachment of a dividend entitlement, giving entitlement to the tax credit provided for in b of 1 of article 220 of the General Tax Code; 2. The payment of interest subject to the withholding tax provided for in article 119 bis (1) or article 1678…

The repurchase agreement becomes enforceable against third parties as soon as the financial securities are delivered, the terms of which are set by decree.

If the transferor defaults on its obligation to pay the transfer price, the securities remain the property of the transferee. If the transferee defaults on its obligation to transfer the securities, the transfer price remains the property of the transferor.