2011 US Code
Title 12 - Banks and Banking
Chapter 45 - PAYMENT SYSTEM RISK REDUCTION (§§ 4401 - 4422)
Subchapter I - BILATERAL AND CLEARING ORGANIZATION NETTING (§§ 4401 - 4407)
Section 4401 - Findings and purpose
View MetadataPublication Title | United States Code, 2006 Edition, Supplement 5, Title 12 - BANKS AND BANKING |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 12 - BANKS AND BANKING CHAPTER 45 - PAYMENT SYSTEM RISK REDUCTION SUBCHAPTER I - BILATERAL AND CLEARING ORGANIZATION NETTING Sec. 4401 - Findings and purpose |
Contains | section 4401 |
Date | 2011 |
Laws in Effect as of Date | January 3, 2012 |
Positive Law | No |
Disposition | standard |
Source Credit | Pub. L. 102-242, title IV, §401, Dec. 19, 1991, 105 Stat. 2371. |
Statutes at Large Reference | 105 Stat. 2371 |
Public Law References | Public Law 102-242 |
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The Congress finds that—
(1) many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations;
(2) the efficient processing of such transactions is essential to a smoothly functioning economy;
(3) such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;
(4) such netting procedures would reduce the systemic risk within the banking system and financial markets; and
(5) the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.
(Pub. L. 102–242, title IV, §401, Dec. 19, 1991, 105 Stat. 2371.)
SeparabilityIf any provision of Pub. L. 102–242 or any application of any provision thereof to any person or circumstance is held invalid, the remainder of Pub. L. 102–242 and the application of any remaining provision of such Act to any other person or circumstance not to be affected by such holding, see section 481 of Pub. L. 102–242, set out as a note under section 1811 of this title.
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