Banks Act, 1990 (Act No. 94 of 1990)RegulationsRegulations relating to BanksChapter II : Financial, Risk-based and other related Returns and Instructions, Directives and Interpretations relating to the completion thereof17. Assets sold or acquired in terms of a repurchase or resale agreement |
| (1) | All repurchase and resale agreements concluded by a bank shall comply with the conditions specified below, and such further conditions as may be specified in writing by the Registrar. |
| (a) | No repurchase or resale agreement shall be concluded by a bank with a client of that bank without such client's prior consent. |
| (b) | A bank shall advise its client in writing of every such agreement concluded between them. |
| (c) | All documentation relating to such agreements, including letters of confirmation, statements of account and audit certificates, furnished to its clients by a bank, shall clearly identify the relevant transactions as repurchase or resale agreements. |
| (d) | Each transaction shall be recorded in the accounting records of the bank, including the client's account in the books of the bank, and the client shall be advised in writing of each transaction on his/her/its account with the bank concerned. |
| (e) | The underlying asset of such agreement shall at all times separately be identified physically and in the accounting records of the bank. |