§ 4403. Bilateral netting
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/usc/title-12/section-4403A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General rule Notwithstanding any other provision of State or Federal law (other than section 1821(e) of this title, section 5390(c) of this title, section 4617 of this title, section 1787(c) of this title, or any order authorized under section 78eee(b)(2) of title 15), the covered contractual payment obligations and the covered contractual payment entitlements between any 2 financial institutions shall be terminated, liquidated, accelerated, and netted in accordance with, and subject to the conditions of, the terms of any applicable netting contract (except as provided in section 561(b)(2) of title 11).
(b)Limitation on obligation to make payment The only obligation, if any, of a financial institution to make payment with respect to covered contractual payment obligations to another financial institution shall be equal to its net obligation to such other financial institution, and no such obligation shall exist if there is no net obligation.
(c)Limitation on right to receive payment The only right, if any, of a financial institution to receive payments with respect to covered contractual payment entitlements from another financial institution shall be equal to its net entitlement with respect to such other financial institution, and no such right shall exist if there is no net entitlement.
(d)Payment of net entitlement of failed financial institution The net entitlement of any failed financial institution, if any, shall be paid to the failed financial institution in accordance with, and subject to the conditions of, the applicable netting contract.
(e)Effectiveness notwithstanding status as financial institution This section shall be given effect notwithstanding that a financial institution is a failed financial institution.
(f)Enforceability of security agreements The provisions of any security agreement or arrangement or other credit enhancement related to one or more netting contracts between any 2 financial institutions shall be enforceable in accordance with their terms (except as provided in section 561(b)(2) of title 11), and shall not be stayed, avoided, or otherwise limited by any State or Federal law (other than section 1821(e) of this title, section 1787(c) of this title, and section 78eee(b)(2) of title 15).
(Pub. L. 102–242, title IV, § 403, Dec. 19, 1991, 105 Stat. 2374; Pub. L. 109–8, title IX, § 906(b), Apr. 20, 2005, 119 Stat. 168; Pub. L. 109–390, § 4(a), Dec. 12, 2006, 120 Stat. 2695; Pub. L. 111–203, title II, § 211(c), July 21, 2010, 124 Stat. 1514.)
Connections13 cite this · traces to 8
Cited by 13 sections · top 11
statutes-at-large
- Public Law 102–242To require the least-cost resolution of insured depository institutions, to improve supervision and examinations, to provide additional resources to the Bank Insurance Fund, and for other purposes
- Public Law 109–390To improve the netting process for financial contracts, and for other purposes
- Public Law 109–8To amend title 11 of the United States Code, and for other purposes
- Public Law 111–203To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end “too big to fail”, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes
register
- NoticesNotice of application (“Application”) for exemption, pursuant to section 6(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), from the provisions of sections 9(a), 13(a), 15(a) and 15(b) of the Act and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder
- Rules and RegulationsFinal rule
statute-compilations
Traces to 8 documents
U.S. Code
- Insurance Funds§ 1821
- Powers and duties of the Corporation§ 5390
- Authority over critically undercapitalized regulated entities§ 4617
- Payment of insurance§ 1787
- Protection of customers§ 78eee
- Contractual right to terminate, liquidate, accelerate, or offset under a master netting agreement and across contracts; proceedings under chapter 15§ 561
- Definitions§ 5301
- Definitions§ 101
17 references not yet in our index
- Pub. L. 102–242, title IV, § 403
- 105 Stat. 2374
- Pub. L. 109–8, title IX, § 906(b)
- 119 Stat. 168
- Pub. L. 109–390, § 4(a)
- 120 Stat. 2695
- Pub. L. 111–203, title II, § 211(c)
- 124 Stat. 1514
- Pub. L. 111–203
- Pub. L. 109–390
- Pub. L. 109–390, § 4(a)(1)
- Pub. L. 109–8, § 906(b)(1)
- Pub. L. 109–8, § 906(b)(2)
- section 4 of Pub. L. 111–203
- section 7 of Pub. L. 109–390
- Pub. L. 109–8
- section 1501 of Pub. L. 109–8
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§ 4403
Bilateral netting
Stat.×4
Bills×3
Fed. Reg.×2
Stat. Comp.×2
U.S.C.×2
Pub. L.Pub. L. 102–242, title IV, § 403
Stat.105 Stat. 2374
Pub. L.Pub. L. 109–8, title IX, § 906(b)
Stat.119 Stat. 168
Cites 25 · showing 12Cited by 13 across 5 sources