Special Purchase and Resale Agreement

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Special Purchase and Resale Agreement

A practice in which the Bank of Canada buys securities from a bank with the proviso that the bank repurchases the same securities for an agreed-upon price the following day. The Bank of Canada does this to increase the amount of money in circulation (the purchase price for the securities), which reduces overnight interest rates and increases the availability of credit. See also: Open-market operation.
References in periodicals archive ?
Mesaba will file a plan of reorganisation with its bankruptcy court that will implement the terms of the SPRA and provide for a release of any claims Mesaba may have against MAIR.
Failure of the SPRA feature caused distributions of Additional Interest, Supplemental Interest and Contingent Interest to go to paydown the notes; however, payments Additional Interest resumed once the feature was brought into compliance.
Additional Interest, Supplemental Interest and Contingent Interest payments have not been made since the last review but will likely be reinstated once the SPRA is satisfied.
The SPRA is equal to the excess of the aggregate outstanding notional of the notes over 99.
Looking ahead, payments to the residual interest subordinated notes could be constrained by further occurrences of the SPRA, and an increasing average cost of liabilities as the relatively inexpensive senior notes continue to amortize.
SPRA makes the process affordable and low risk, even for a person of moderate means," said Richard Cassada, President, Synergy Patent Review Association.