Sec. 401. FINDINGS AND PURPOSE

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## SEC. 401 FINDINGS AND PURPOSE **[**[12 U.S.C. 4401](/us/usc/t12/s4401)**]** The Congress finds that— ####

(1)many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations; ####

(2)the efficient processing of such transactions is essential to a smoothly functioning economy; ####

(3)such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted; ####

(4)such netting procedures would reduce the systemic risk within the banking system and financial markets; and ####

(5)the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.

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U.S. Code

Findings and purpose
§ 4401

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Sec. 401

FINDINGS AND PURPOSE

U.S.C.§ 4401

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