Document background
The Sell and Buy Back Agreement serves as a crucial financing instrument in the Dutch market, providing a structured mechanism for temporary transfer of assets with a commitment to repurchase. This document type is commonly used when parties seek to arrange short-term financing while maintaining economic exposure to the underlying assets. The agreement must comply with Dutch civil law, particularly the Burgerlijk Wetboek, and financial regulations including the Wet op het financieel toezicht (Wft). It is particularly relevant in scenarios where traditional lending arrangements may not be optimal or where parties seek to manage their balance sheet exposure. The document includes comprehensive provisions for asset transfer, pricing mechanisms, risk allocation, and default scenarios, while ensuring compliance with both Dutch and EU regulatory requirements.
