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+Article 14 Eligible repurchase agreements |
Article 14 Eligible repurchase agreementsArticle 14 Eligible repurchase agreements A repurchase agreement shall be eligible to be entered into by an MMF provided that all of the following conditions are fulfilled:
(a)
it is used on a temporary basis, for no more than seven working days, only for liquidity management purposes and not for investment purposes other than as referred to in point (c);
(b)
the counterparty receiving assets transferred by the MMF as collateral under the repurchase agreement is prohibited from selling, investing, pledging or otherwise transferring those assets without the MMF's prior consent;
(c)
the cash received by the MMF as part of the repurchase agreement is able to be:
(i)
placed on deposits in accordance with point (f) of Article 50(1) of Directive 2009/65/EC; or
(ii)
invested in assets referred to in Article 15(6), but shall not otherwise be invested in eligible assets as referred to in Article 9, transferred or otherwise reused;
(d)
the cash received by the MMF as part of the repurchase agreement that is not centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation does not exceed 10 % of its assets;
(da)
the cash received by the MMF as part of the repurchase agreement that is centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation does not exceed 15 % of its assets;
(e)
the MMF has the right to terminate the agreement at any time upon giving prior notice of no more than two working days. 1. Overview
1.1 References1.2 Identified Requirements1.3 Related Standards2. Identified Requirements
3. Related Standards
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