Page:United States Statutes at Large Volume 124.djvu/1694

124 STAT. 1668 PUBLIC LAW 111–203—JULY 21, 2010 purchase or sale on the occurrence of a bona fide contingency that might reasonably be expected to affect or be affected by the creditworthiness of a party other than a party to the agreement, contract, or transaction; ‘‘(vii) any note, bond, or evidence of indebtedness that is a security, as defined in section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)); ‘‘(viii) any agreement, contract, or transaction that is— ‘‘(I) based on a security; and ‘‘(II) entered into directly or through an under- writer (as defined in section 2(a)(11) of the Securi- ties Act of 1933 (15 U.S.C. 77b(a)(11)) by the issuer of such security for the purposes of raising capital, unless the agreement, contract, or transaction is entered into to manage a risk associated with cap- ital raising; ‘‘(ix) any agreement, contract, or transaction a counterparty of which is a Federal Reserve bank, the Federal Government, or a Federal agency that is expressly backed by the full faith and credit of the United States; and ‘‘(x) any security-based swap, other than a security- based swap as described in subparagraph (D). ‘‘(C) RULE OF CONSTRUCTION REGARDING MASTER AGREEMENTS.— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), the term ‘swap’ includes a master agreement that provides for an agreement, contract, or transaction that is a swap under subparagraph (A), together with each supplement to any master agreement, without regard to whether the master agreement contains an agree- ment, contract, or transaction that is not a swap pursu- ant to subparagraph (A). ‘‘(ii) EXCEPTION.—For purposes of clause (i), the master agreement shall be considered to be a swap only with respect to each agreement, contract, or trans- action covered by the master agreement that is a swap pursuant to subparagraph (A). ‘‘(D) MIXED SWAP.—The term ‘security-based swap’ includes any agreement, contract, or transaction that is as described in section 3(a)(68)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(68)(A)) and also is based on the value of 1 or more interest or other rates, currencies, commodities, instruments of indebtedness, indices, quantitative measures, other financial or economic interest or property of any kind (other than a single secu- rity or a narrow-based security index), or the occurrence, non-occurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, eco- nomic, or commercial consequence (other than an event described in subparagraph (A)(iii)). ‘‘(E) TREATMENT OF FOREIGN EXCHANGE SWAPS AND FORWARDS.— ‘‘(i) IN GENERAL.—Foreign exchange swaps and for- eign exchange forwards shall be considered swaps under this paragraph unless the Secretary makes a Determination.