A repurchase sale is, according to the French civil code , a sale with faculty, but not obligation , of redemption by the seller. This faculty is valid for a period of six months to five years.
Re-sale is a credit instrument because it allows the owner of a property to obtain the funds he needs through the sale of the property, while maintaining the hope of eventually recovering the property , s he returns to a better fortune by returning the price and its accessories to the buyer. It is also possible for him to continue to occupy the premises during the term of the repurchase, against the payment of indemnities.
Article 1659 of the Civil Code: The option of redemption or repurchase is a pact by which the seller reserves the right to take back the thing sold, by returning the principal price and the reimbursement referred to in Article 1673 1.
This faculty of réméré was introduced in the Napoleonic civil code on March 16, 1804 but it is mentioned in notarial acts well before 2 . His most famous use will certainly be the re-sale of the future ” General Dumas ” (by his own father who will later buy him), hero of the revolution and father of the writer Alexandre Dumas .
This somewhat obsolete legal concept was used extensively by the banking industry in the 1980s and early 1990s due to a lack of a better legal framework for refinancing securities , particularly UCITS. currency. This was a substitute for the repo .
The word “réméré” is an altered form of classical Latin 3 ” redimere “, “redeem”.
The repurchase in France
It is also used today to refinance people in difficulty, often individuals registered in the National Register of Credit Repayment Events (FICP) of the Banque de France .
This type of repurchase is for people who own property they sell “réméré” to repay their debts, and then redeem their property for the price they received, plus fees, when their financial situation s ‘cleans up, usually through a long-term mortgage. Legally, the redemption is considered a cancellation of the repurchase sale.
The repurchase Switzerland
Associated with the pledge loan according to the Swiss Civil Code, the pawnbroking banks of Zurich and Geneva say traditional do not offer this service. Repayment in Switzerland is only practiced by a private company in Lausanne, Valorum 4 . Plaintiffs have the choice between interest-based pawnshell and repurchase purchase. In the first case, the client deposits his items as pledges for money and once the loan is repaid with interest, the loan recipient recovers his items. In the case of the repurchase, the plaintiff sells his objects and redeems them at term with a surplus value for the seller. In the case of repurchase, there is an immediate transfer of ownership that does not exist in the case of the loan.
The repurchase perfectly meets the expectations of the clients attentive to the moral prohibition of the loan at interest.
Notes and references
- ↑ http://www.legifrance.gouv.fr/affichCodeArticle.do?cidTexte=LEGITEXT000006070721&idArticle=LEGIARTI000006442152&dateTexte=&categorieLien=cid [ archive ]
- ↑ March 5, 1707 – 3 E 8/149 – Archives of the notary Isaac Voullereau – Colméry (Nièvre)
- ↑ “réméré” [ archive ] on CNRTL.fr
- ↑ ” Valorum Sàrl – securities management agency ” [ archive ] , on www.123goldexpert.ch ,