Page:United States Statutes at Large Volume 105 Part 3.djvu/489

 PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2373 (C) a corporation chartered under section 25(a) of the Federal Reserve Act; or (D) a corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under section 25 of the Federal Reserve Act. (7) FAILED FINANCIAL INSTITUTION. —The term "failed financial institution" means a financial institution that— (A) fails to satisfy a covered contractual payment obligation when due; (B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings; or (C) has generally ceased to meet its obligations when due. (8) FAILED MEMBER.—The term "failed member" means any member that— (A) fails to satisfy a covered clearing obligation when due, (B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings, or (C) has generally ceased to meet its obligations when due. (9) FINANCIAL INSTITUTION. —The term "financial institution" means a broker or dealer, a depository institution, a futures commission merchant, or any other institution as determined by the Board of Governors of the Federal Reserve System. (10) FUTURES COMMISSION MERCHANT. —The term "futures commission merchant" means a company that is registered or licensed under Federal law to engage in the business of selling futures and options in commodities. (11) MEMBER. —The term "member" means a member of or participant in a clearing organization, and includes the clearing organization. (12) NET ENTITLEMENT. — The term "net entitlement" means the amount by which the covered contractual payment entitlements of a financial institution or member exceed the covered contractual payment obligations of the institution or member after netting under a netting contract. (13) NET OBLIGATION. — The term "net obligation" meajis the amount by which the covered contractual payment obligations of a financial institution or member exceed the covered contractual payment entitlements of the institution or member after netting under a netting contract. (14) NETTING CONTRACT.— (A) IN GENERAL. —The term "netting contract"— (i) means a contract or agreement between 2 or more financial institutions or members, that— (I) is governed by the laws of the United States, any State, or any political subdivision of any State, and (II) provides for netting present or future pay- ment obligations or payment entitlements (including liquidation or close-out values relating to the obligations or entitlements) among the parties to the agreement; and (ii) includes the rules of a clearing organization.

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