A Must-Read For 'Repo' Counterparties

Law360, New York (April 19, 2013, 5:25 PM EDT) -- Few courts have construed the meaning of “repurchase agreement” as used in the Bankruptcy Code, so the recent HomeBanc[1] case out of the United States Bankruptcy Court for the District of Delaware is a must-read for “repo” counterparties.

The principal issue in HomeBanc was whether several zero purchase price repo transactions under the parties’ contract for the sale and repurchase of mortgage-backed securities fell within the definition of a “repurchase agreement” in Section 101(47) of the Bankruptcy Code. The HomeBanc court also weighed in on (1)...
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