PART 3PROHIBITIONS AND EXCEPTIONS
Financial institution exposures: repo transactions18.
A ring-fenced body (“A”) may incur a financial institution exposure to a relevant financial institution (“B”) pursuant to an agreement with B—
(a)
for the transfer of its own assets to B on terms—
(i)
imposing an obligation on A to buy those assets, or assets of the same description, from B at one or more subsequent times; or
(ii)
imposing an obligation on B to transfer those assets, or assets of the same description, to A at one or more subsequent times;
(b)
for the transfer of liquid assets from B to A for the purpose of managing A's liquidity risk on terms—
(i)
imposing an obligation on B to buy those assets, or assets of the same description from A at one or more subsequent times; or
(ii)
imposing an obligation on A to transfer those assets, or assets of the same description, to B at one or more subsequent times.