Meaning of repurchase agreement

repur'chase agree"ment

Pronunciation: [key]
  1. a contract between a dealer, as a bank, and an investor, whereby the investor purchases securities with the promise that they will be bought back by the dealer on a designated date, for which the investor receives a fixed return.
  2. a contract between a buyer and a seller whereby the seller agrees to repurchase the item sold after a specified length of time or amount of use. Abbr.: RP&hasp; Also called
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.