repurchase agreement
(RP)
Noun
1. A short-term contractual arrangement whereby money is borrowed or securities lent through the sale of securities on one date under the agreement that the seller buy back the same or equivalent securities from the buyer at a fixed price on a set date or at call.
2. A contract either between a vendor and a lessor requiring the vendor to buy back leased equipment that the lessor purchased from the vendor, often in the event of the lessee’s default on the lease or as part of a vendor program.
Synonym(s):
- repo.