PUBLIC LAW 109–8—APR. 20, 2005
119 STAT. 179
‘‘§ 560. Contractual right to liquidate, terminate, or accelerate a swap agreement’’; (2) in the first sentence, by striking ‘‘termination of a swap agreement’’ and inserting ‘‘liquidation, termination, or acceleration of one or more swap agreements’’; (3) by striking ‘‘in connection with any swap agreement’’ and inserting ‘‘in connection with the termination, liquidation, or acceleration of one or more swap agreements’’; and (4) in the second sentence, by striking ‘‘As used’’ and all that follows through ‘‘right,’’ and inserting ‘‘As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right,’’. (k) LIQUIDATION, TERMINATION, ACCELERATION, OR OFFSET UNDER A MASTER NETTING AGREEMENT AND ACROSS CONTRACTS.— (1) IN GENERAL.—Title 11, United States Code, is amended by inserting after section 560 the following: ‘‘§ 561. Contractual right to terminate, liquidate, accelerate, or offset under a master netting agreement and across contracts; proceedings under chapter 15 ‘‘(a) Subject to subsection (b), the exercise of any contractual right, because of a condition of the kind specified in section 365(e)(1), to cause the termination, liquidation, or acceleration of or to offset or net termination values, payment amounts, or other transfer obligations arising under or in connection with one or more (or the termination, liquidation, or acceleration of one or more)— ‘‘(1) securities contracts, as defined in section 741(7); ‘‘(2) commodity contracts, as defined in section 761(4); ‘‘(3) forward contracts; ‘‘(4) repurchase agreements; ‘‘(5) swap agreements; or ‘‘(6) master netting agreements, shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by any order of a court or administrative agency in any proceeding under this title. ‘‘(b)(1) A party may exercise a contractual right described in subsection (a) to terminate, liquidate, or accelerate only to the extent that such party could exercise such a right under section 555, 556, 559, or 560 for each individual contract covered by the master netting agreement in issue. ‘‘(2) If a debtor is a commodity broker subject to subchapter IV of chapter 7— ‘‘(A) a party may not net or offset an obligation to the debtor arising under, or in connection with, a commodity contract traded on or subject to the rules of a contract market designated under the Commodity Exchange Act or a derivatives transaction execution facility registered under the Commodity Exchange Act against any claim arising under, or in connection
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