Page:United States Statutes at Large Volume 98 Part 1.djvu/413

 PUBLIC LAW 98-353—JULY 10, 1984 "(35) 'repo participant' means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; "(36) 'repurchase agreement' (which definition also applies to a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers' acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers' acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers' acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;". SEC. 392. Section 36203) of title 11, United States Code, is amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: "(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;". SEC. 393. Section 546 of title 11, United States Code, is amended by inserting after subsection (e), as redesignated by section 251, the following: "(f) Notwithstanding sections 544, 545, 547, 548(a)(2), and 548a>) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.". SEC. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out "and" at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof "; and"; and by inserting after paragraph (B) the following new subparagraph: "(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.". SEC. 395. Section 5530b)(l) of title 11, United States Code, is amended by inserting ", 36203)(7)," after "3620b)(6)".

98 STAT. 365

Securities.

Ante, p. 363.

Ante, p. 358.

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