Financial Netting Improvements Act of 2006
Latest action · Dec 12, 2006 Became Public Law No: 109-390.
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.
- IntroducedJun 12, 2006
- Passed HouseSep 27, 2006
- Passed SenateSep 30, 2006
- To the PresidentDec 4, 2006
- Became lawDec 12, 2006Public Law 109-390
Summary
(This measure has not been amended since it was passed by the Senate on September 30, 2006. The summary of that version is repeated here.)
Financial Netting Improvements Act of 2006 - (Sec. 2) Amends the Federal Deposit Insurance Act (FDIA) and the Federal Credit Union Act to revise treatment of certain agreements entered into before appointment of depository institution conservators or receivers, including securities contracts, forward contracts, and swap agreements.
(Sec. 3) Defines "person" to include any governmental entity.
(Sec. 4) Amends the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) to revise certain requirements pertinent to bilateral netting to declare that the covered contractual payment obligations and the covered contractual payment entitlements between any two financial institutions shall be terminated, liquidated, accelerated, and netted in accordance with, and subject to the conditions of, the terms of any applicable netting contract.
Declares, with respect to clearing organization netting, that the covered contractual payment obligations and the covered contractual payment entitlements of a member of a clearing organization to and from all other organization members shall be terminated, liquidated, accelerated, and netted in accordance with and subject to the conditions of any applicable netting contract.
(Sec. 5) Makes conforming amendments to the FDICIA, federal bankruptcy law, and the Securities Investor Protection Act of 1970.
Amends the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 to state that the meanings of terms used in the Act are applicable for its purposes only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws, and the Commodity Exchange Act.
(Sec. 6) Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to repeal the non-enforceability of a walkaway clause (thus making it enforceable) in a qualified financial contract of an insured depository institution in default.
States that any payment or delivery obligation otherwise due from a party pursuant to a qualified financial contract is suspended from the time a receiver is appointed until the earlier of: (1) the time a party receives notice that the contract has been transferred; or (2) 5 p.m. (eastern time) on the business day after the receiver's appointment.
Recorded votes 1
Newest first. Open one to see how every member voted.
| Roll call | Question | Result | Date |
|---|---|---|---|
| House 522 | Suspend the Rules and Agree to Senate Amendments | Passed395–0 | Nov 15, 2006 |
Cosponsors 1
Members who signed on, in the order they did. All signed on Jun 12, 2006.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-FL | Debbie Wasserman Schultz | Original | Jun 12, 2006 |
Committees 2
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Financial Services Committee | Referred Jun 12, 2006Markup Jun 14, 2006Reported Sep 13, 2006 |
| House | Judiciary Committee | Referred Jun 12, 2006Discharged Sep 22, 2006 |
Actions 26
Everything that happened, newest first.
- Dec 12, 2006Signed by President.
- Dec 12, 2006Became Public Law No: 109-390.
- Dec 4, 2006Presented to President.
- Nov 15, 2006Mr. McHenry moved that the House suspend the rules and agree to the Senate amendments. (consideration: CR H8650-8651)
- Nov 15, 2006DEBATE - The House proceeded with forty minutes of debate on the motion to suspend the rules and agree to the Senate amendments to H.R. 5585.
- Nov 15, 2006At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 5, rule I, the chair announced that further proceedings on the motion would be postponed.
- Nov 15, 2006Considered as unfinished business. (consideration: CR H8654-8655)
- Nov 15, 2006Resolving differences -- House actions: On motion that the House suspend the rules and agree to the Senate amendments Agreed to by the Yeas and Nays: (2/3 required): 395 - 0 (Roll no. 522). (text as House agreed to Senate amendment: CR H8650)
- Nov 15, 2006Motion to reconsider laid on the table Agreed to without objection.
- Sep 30, 2006Measure laid before Senate by unanimous consent. (consideration: CR 9/29/2006 S10769)
- Sep 30, 2006Passed/agreed to in Senate: Passed Senate with amendments by Unanimous Consent.
- Sep 30, 2006Message on Senate action sent to the House.
- Sep 28, 2006Received in the Senate, read twice.
- Sep 27, 2006Mr. McHenry moved to suspend the rules and pass the bill, as amended.
- Sep 27, 2006Considered under suspension of the rules. (consideration: CR H7598-7601)
- Sep 27, 2006DEBATE - The House proceeded with forty minutes of debate on H.R. 5585.
- Sep 27, 2006Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H7598-7600)
- Sep 27, 2006Motion to reconsider laid on the table Agreed to without objection.
- Sep 22, 2006Committee on Judiciary discharged.
- Sep 22, 2006Placed on the Union Calendar, Calendar No. 403.
- Sep 12, 2006Reported by the Committee on Financial Services. H. Rept. 109-648, Part I.
- Sep 12, 2006House Committee on Judiciary Granted an extension for further consideration ending not later than Sept. 22, 2006.
- Jun 14, 2006Committee Consideration and Mark-up Session Held.
- Jun 14, 2006Ordered to be Reported by Voice Vote.
- Jun 12, 2006Introduced in House
- Jun 12, 2006Referred 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.
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Committee report
Congressional Budget Office cost estimates 2
- Jul 12, 2006H.R. 5585, Financial Netting Improvements Act of 2006<p>Cost estimate for the bill as ordered reported by the House Committee on Financial Services on June 14, 2006</p>
- Jul 12, 2006H.R. 5585, Financial Netting Improvements Act of 2006Cost estimate for the bill as ordered reported by the House Committee on Financial Services on June 14, 2006
Amendments 1
Amendments offered to this bill.
| Amendment | Description | Offered by | Status |
|---|---|---|---|
| SA 5114 | To strike a provision relating to compensation of trustees and filing fees. | Robert F. Bennett R-UT | Amendment SA 5114 agreed to in Senate by Unanimous Consent. |
Titles 5
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To improve the netting process for financial contracts, and for other purposes.
- Short Titles as Introduced
- Financial Netting Improvements Act of 2006
- Short Titles as Passed House
- Financial Netting Improvements Act of 2006
- Short Titles as Enacted
- Financial Netting Improvements Act of 2006
- Short Titles as Passed Senate for portions of this bill
- Financial Netting Improvements Act of 2006
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
Text 6
Each version as it was printed, newest first.
- —Enrolled Bill
- Oct 1, 2006Engrossed Amendment Senate
- Sep 28, 2006Received in Senate
- Sep 27, 2006Engrossed in House
- Sep 22, 2006Reported in House
- Jun 12, 2006Introduced in House
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; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.