2016 US Code
Title 12 - Banks and Banking
Chapter 45 - Payment System Risk Reduction
Subchapter I - Bilateral and Clearing Organization Netting
Sec. 4401 - Findings and purpose
| 12 U.S.C. § 4401 (2016) |
| §4401. Findings and purpose |
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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. |
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(Pub. L. 102–242, title IV, §401, Dec. 19, 1991, 105 Stat. 2371.) |
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SEPARABILITY
If 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. |
| United States Code, 2012 Edition, Supplement 4, Title 12 - BANKS AND BANKING |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 12 - BANKS AND BANKING CHAPTER 45 - PAYMENT SYSTEM RISK REDUCTION SUBCHAPTER I - BILATERAL AND CLEARING ORGANIZATION NETTING Sec. 4401 - Findings and purpose |
| section 4401 |
| 2016 |
| January 6, 2017 |
| No |
| standard |
| 105 Stat. 2371 |
| Public Law 102-242 |
