Banking and securities law

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  • The legal regime of the sale with right of repurchase: conditions of validity and detailed effects

    By Charlotte GAUCHON
    15 June 2025
    The sale with right of repurchase of financial securities is an old legal mechanism, provided for in the Civil Code, which offers remarkable flexibility for financing or portfolio management transactions. It is a contract of sale with a specific clause: the seller reserves the right to take back the securities sold within an agreed period, in return for repayment of the price. This tool, both powerful and subtle, can be a real strategic asset if it is mastered. However, to avoid legal pitfalls, it is essential to have a precise understanding of the conditions and effects. For a complete overview of the sale with right of repurchase, see our detailed guide. The essential conditions for the validity of a sale with right of repurchase of securities For a sale with right of repurchase to be validly concluded, several conditions of substance and form must be met. These set out the framework within which the sale...
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