Page:United States Statutes at Large Volume 113 Part 2.djvu/374

 113 STAT. 1394 PUBLIC LAW 106-102—NOV. 12, 1999 (ii) based on such factors as financial sophistication, net worth, and knowledge and experience in financial matters, have the capability to evaluate the information available, as determined under generally applicable banking standards or guidelines; or (6) any swap agreement, including credit and equity swaps, except that an equity swap that is sold directly to any person other thgm a qualified investor (as defined in section 3(a)(54) of the Securities Act of 1934) shall not be treated as an identified banking product. (b) DEFINITION OF SWAP AGREEMENT.— For purposes of subsection (a)(6), the term "swap agreement" means any individually negotiated contract, agreement, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodities, securities, currencies, interest or other rates, indices, or other assets, but does not include any other identified banking product, as defined in paragraphs (1) through (5) of subsection (a). (c) CLASSIFICATION LIMITED.— Classification of a particular product as an identified banking product pursuant to this section shall not be construed as finding or implying that such product is or is not a security for any purpose under the securities laws, or is or is not an account, agreement, contract, or transaction for any purpose under the Commodity Exchange Act. (d) INCORPORATED DEFINITIONS.— For purposes of this section, the terms "bank" and "qualified investor" have the same meanings as given in section 3(a) of the Securities Exchange Act of 1934, as amended by this Act. SEC. 207. ADDITIONAL DEFINITIONS. 15 USC 78c. Section 3(a) of the Securities Exchange Act of 1934 is amended by adding at the end the following new paragraph: "(54) QUALIFIED INVESTOR. — "(A) DEFINITION.—Except as provided in subparagraph (B), for purposes of this title, the term 'qualified investor' means— "(i) any investment company registered with the Commission under section 8 of the Investment Company Act of 1940; "(ii) any issuer eligible for an exclusion from the definition of investment company pursuant to section 3(c)(7) of the Investment Company Act of 1940; "(iii) any bank (as defined in paragraph (6) of this subsection), savings association (as defined in section 3(b) of the Federal Deposit Insurance Act), broker, dealer, insurance company (as defined in section 2(a)(13) of the Securities Act of 1933), or business development company (as defined in section 2(a)(48) of the Investment Company Act of 1940); "(iv) any small business investment company licensed by the United States Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; "(v) any State sponsored employee benefit plan, or any other employee benefit plan, within the meaning of the Employee Retirement Income Security Act of

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