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Keywords

repurchase agreement, REPO, securities, investor, Secuties Investor Protection Act

Abstract

Addresses the treatment of Repurchase Agreements (REPOS) in bankruptcy proceedings before and after the Bankruptcy Reform Act of 1984. Examines the treatment of REPOs as both sales and loans, and concludes that courts should treat REPO transactions as contracts for a sale and subsequent repurchase, in order to insure market stability, protect consumers, and maximize assets. The author further concludes that administering trustees should not be able to classify REPOs as loans, then refuse to protect the owners of securities underlying the REPOs as customers.

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