Financial Contract Netting Improvement Act of 2001
Latest action · Mar 2, 2001 Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedJan 3, 2001
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Retains the right to cause the acceleration of a qualified financial contract with an insured depository institution in receivership status.
Retains the Federal Deposit Insurance Corporation (FDIC) right or power to transfer, disaffirm, or repudiate a qualified financial contract of a failed institution.
Prohibits enforcement of a walkaway clause in a qualified financial contract of a failed insured depository institution.
Revises guidelines pertaining to an insolvent insured depository institution and: (1) transfers of qualified financial contracts; and (2) the termination rights of counterparties to a qualified financial contract.
Prescribes guidelines for: (1) the disaffirmance or repudiation of qualified financial contracts by the conservator or receiver for a failed depository institution; and (2) the treatment of a master agreement as a single agreement and a single qualified financial contract.
Amends the Federal Bankruptcy Code to: (1) deny an automatic stay to set-offs under certain swap and netting agreements; and (2) restrict bankruptcy trustee avoidance power regarding certain master netting agreement transfers to those that are fraudulent in nature.
Sets forth statutory guidelines governing: (1) the termination or acceleration of designated contracts and agreements; and (2) commodity broker and stockbroker liquidation with respect to the priority of unsecured claims, or customer property or distributions.
Amends the FDIA to authorize the FDIC to prescribe more detailed recordkeeping requirements for qualified financial contracts.
Exempts specified collateralization agreements from the contemporaneous execution requirement that renders invalid certain agreements against FDIC interests in certain asset acquisitions.
Amends the Securities Investor Protection Act of 1971 to prohibit a judicial protective decree, or one issued by the Securities Investor Protection Corporation, from operating as a stay of creditor's contract rights to liquidate, terminate, or accelerate designated contracts and agreements. Allows such a protective order, however, to operate as a stay of foreclosure on securities collateral pledged by the debtor.
Cosponsors
Members who signed on, in the order they did.
Actions 4
Everything that happened, newest first.
- Mar 2, 2001Referred to the Subcommittee on Financial Institutions and Consumer Credit.
- Feb 12, 2001Referred to the Subcommittee on Commercial and Administrative Law.
- Jan 3, 2001Introduced in House
- Jan 3, 2001Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Administrative procedure
- Bank failures
- Bank records
- Bankruptcy
- Brokers
- Certificates of deposit
- Civil actions and liability
- Commerce
- Contracts
- Crime and Law Enforcement
- Damages
- Debtor and creditor
- Department of the Treasury
- Economics and Public Finance
- Federal Deposit Insurance Corporation
- Finance and Financial Sector
- Financial institutions
- Foreclosure
- Foreign banks and banking
- Foreign exchange
- Foreign Trade and International Finance
- Fraud
- Futures trading
- Government corporations
- Government lending
- Government Operations and Politics
- Government paperwork
- Housing and Community Development
- Injunctions
- Law
- Liability (Law)
- Margins (Security trading)
- Mortgage loans
- Options (Contract)
- Securities
- Surety and fidelity
- Swaps (Finance)
- Trusts and trustees
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.