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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 45— PAYMENT SYSTEM RISK REDUCTION · SUBCHAPTER I— BILATERAL AND CLEARING ORGANIZATION NETTING · § 4401

§ 4401. Findings and purpose

197 words·~1 min read·/usc/title-12/section-4401

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

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.
(Pub. L. 102–242, title IV, § 401, Dec. 19, 1991, 105 Stat. 2371.)
Connections21 cite this · traces to 1
Cited by 21 sections
4 references not yet in our index
  • Pub. L. 102–242, title IV, § 401
  • 105 Stat. 2371
  • Pub. L. 102–242
  • section 481 of Pub. L. 102–242
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cites case law
§ 4401
Findings and purpose
Fed. Reg.×7
C.F.R.×4
Stat.×4
Stat. Comp.×3
U.S.C.×2
Bills×1
Pub. L.Pub. L. 102–242, title IV, § 401
Stat.105 Stat. 2371
Pub. L.Pub. L. 102–242
Pub. L.section 481 of Pub. L. 102–242
Cites 5Cited by 21 across 6 sources
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