A note purchase agreement is an agreement which is formed between two financial institutes so as to define the various details and terms of purchasing and selling of notes. In such agreements, one party agrees to purchase notes or currency while the other provides it to the first party.
These agreements are generally made between the head bank of a company and a fund providing institution. Any note purchase agreement is made for a certain duration of time and has a proper commencement and termination date.
A note purchase agreement talks about both the parties, their office addresses, contact numbers etc and also about the amount of notes to be purchased. These agreements discuss in detail about the terms to which both the parties agree. But these terms and conditions are legally binding in nature and they cannot be violated by any of the parties. On violation, the party at fault may have to face legal ramifications.
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