Page:United States Statutes at Large Volume 120.djvu/2723

 120 STAT. 2692

PUBLIC LAW 109–390—DEC. 12, 2006

Public Law 109–390 109th Congress An Act Dec. 12, 2006 [H.R. 5585] Financial Netting Improvements Act of 2006. 11 USC 101 note.

To improve the netting process for financial contracts, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Financial Netting Improvements Act of 2006’’. SEC. 2. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS OF DEPOSITORY INSTITUTIONS.

(a) DEFINITION OF SECURITIES CONTRACT.— (1) FDIC-INSURED DEPOSITORY INSTITUTIONS.—Section 11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is amended— (A) in subclause (I)— (i) by striking ‘‘mortgage loan, or’’ and inserting ‘‘mortgage loan,’’; and (ii) by inserting before the semicolon ‘‘(whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in clause (v))’’; (B) in subclause (IV)— (i) by inserting ‘‘(including by novation)’’ after ‘‘the guarantee’’; and (ii) by inserting before the semicolon ‘‘(whether or not such settlement is in connection with any agreement or transaction referred to in subclauses (I) through (XII) (other than subclause (II))’’; (C) in subclause (IX), by striking ‘‘or (VIII)’’ each place such term appears and inserting ‘‘(VIII), (IX), or (X)’’; (D) by redesignating subclauses (VI), (VII), (VIII), (IX), and (X) as subclauses (VIII), (IX), (X), (XI), and (XII), respectively; and (E) by inserting after subclause (V) the following new subparagraphs: ‘‘(VI) means any extension of credit for the clearance or settlement of securities transactions; ‘‘(VII) means any loan transaction coupled with a securities collar transaction, any prepaid securities forward transaction, or any total return swap transaction coupled with a securities sale transaction;’’.

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