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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5585 Engrossed in House (EH)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
109th CONGRESS
  2d Session
                                H. R. 5585

_______________________________________________________________________

                                 AN ACT

 
 To improve the netting process for financial contracts, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Netting Improvements Act 
of 2006''.

SEC. 2. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS OF 
              DEPOSITORY INSTITUTIONS.

    (a) Definition of Securities Contract.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(D)(ii)) is amended--
                    (A) in subclause (I)--
                            (i) by striking ``mortgage loan, or'' and 
                        inserting ``mortgage loan,''; and
                            (ii) by inserting before the semicolon 
                        ``(whether or not such repurchase or reverse 
                        repurchase transaction is a `repurchase 
                        agreement', as defined in clause (v))'';
                    (B) in subclause (IV)--
                            (i) by inserting ``(including by 
                        novation)'' after ``the guarantee''; and
                            (ii) by inserting before the semicolon 
                        ``(whether or not such settlement is in 
                        connection with any agreement or transaction 
                        referred to in subclauses (I) through (XII) 
                        (other than subclause (II))'';
                    (C) in subclause (IX), by striking ``or (VIII)'' 
                each place such term appears and inserting ``(VIII), 
                (IX), or (X)'';
                    (D) by redesignating subclauses (VI), (VII), 
                (VIII), (IX), and (X) as subclauses (VIII), (IX), (X), 
                (XI), and (XII), respectively; and
                    (E) by inserting after subclause (V) the following 
                new subparagraphs:
                                    ``(VI) means any extension of 
                                credit for the clearance or settlement 
                                of securities transactions;
                                    ``(VII) means any loan transaction 
                                coupled with a securities collar 
                                transaction, any prepaid securities 
                                forward transaction, or any total 
                                return swap transaction coupled with a 
                                securities sale transaction;''.
            (2) Insured credit unions.--Section 207(c)(8)(D)(ii) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(ii)) is 
        amended--
                    (A) in subclause (I)--
                            (i) by striking ``mortgage loan, or'' and 
                        inserting ``mortgage loan,''; and
                            (ii) by inserting before the semicolon 
                        ``(whether or not such repurchase or reverse 
                        repurchase transaction is a `repurchase 
                        agreement', as defined in clause (v))'';
                    (B) in subclause (IV)--
                            (i) by inserting ``(including by 
                        novation)'' after ``the guarantee''; and
                            (ii) by inserting before the semicolon 
                        ``(whether or not such settlement is in 
                        connection with any agreement or transaction 
                        referred to in subclauses (I) through (XII) 
                        (other than subclause (II))'';
                    (C) in subclause (IX), by striking ``or (VIII)'' 
                each place such term appears and inserting ``(VIII), 
                (IX), or (X)'';
                    (D) by redesignating subclauses (VI), (VII), 
                (VIII), (IX), and (X) as subclauses (VIII), (IX), (X), 
                (XI), and (XII), respectively; and
                    (E) by inserting after subclause (V) the following 
                new subparagraphs:
                                    ``(VI) means any extension of 
                                credit for the clearance or settlement 
                                of securities transactions;
                                    ``(VII) means any loan transaction 
                                coupled with a securities collar 
                                transaction, any prepaid securities 
                                forward transaction, or any total 
                                return swap transaction coupled with a 
                                securities sale transaction;''.
    (b) Definition of Forward Contract.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(iv)(I) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(8)(D)(iv)(I)) is amended by striking 
        ``transaction, reverse repurchase transaction'' and inserting 
        ``or reverse repurchase transaction (whether or not such 
        repurchase or reverse repurchase transaction is a `repurchase 
        agreement', as defined in clause (v))''.
            (2) Insured credit unions.--Section 207(c)(8)(D)(iv)(I) of 
        the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(iv)(I)) 
        is amended by striking ``transaction, reverse repurchase 
        transaction'' and inserting ``or reverse repurchase transaction 
        (whether or not such repurchase or reverse repurchase 
        transaction is a `repurchase agreement', as defined in clause 
        (v))''.
    (c) Definition of Swap Agreement.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(vi) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(D)(vi)) is amended--
                    (A) in subclause (I)--
                            (i) by striking ``or precious metals'' and 
                        inserting ``, precious metals, or other 
                        commodity''; and
                            (ii) by striking ``or a weather swap, 
                        weather derivative, or weather option'' and 
                        inserting ``weather swap, option, future, or 
                        forward agreement; an emissions swap, option, 
                        future, or forward agreement; or an inflation 
                        swap, option, future, or forward agreement'';
                    (B) in subclause (II)--
                            (i) by inserting ``or other derivatives'' 
                        after ``dealings in the swap''; and
                            (ii) by striking ``future, or option'' and 
                        inserting ``future, option, or spot 
                        transaction''; and
                    (C) by striking ``the Securities Act of 1933, the 
                Securities Exchange Act of 1934, the Public Utility 
                Holding Company Act of 1935, the Trust Indenture Act of 
                1939, the Investment Company Act of 1940, the 
                Investment Advisers Act of 1940, the Securities 
                Investor Protection Act of 1970, the Commodity Exchange 
                Act, the Gramm-Leach-Bliley Act, and the Legal 
                Certainty for Bank Products Act of 2000'' and inserting 
                ``the Gramm-Leach-Bliley Act, the Legal Certainty for 
                Bank Products Act of 2000, the securities laws (as such 
                term is defined in section 3(a)(47) of the Securities 
                Exchange Act of 1934) and the Commodity Exchange Act''.
            (2) Insured credit unions.--Section 207(c)(8)(D)(vi) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(vi)) is 
        amended--
                    (A) in subclause (I)--
                            (i) by striking ``or precious metals'' and 
                        inserting ``, precious metals, or other 
                        commodity''; and
                            (ii) by striking ``or a weather swap, 
                        weather derivative, or weather option'' and 
                        inserting ``weather swap, option, future, or 
                        forward agreement; an emissions swap, option, 
                        future, or forward agreement; or an inflation 
                        swap, option, future, or forward agreement'';
                    (B) in subclause (II)--
                            (i) by inserting ``or other derivatives'' 
                        after ``dealings in the swap''; and
                            (ii) by striking ``future, or option'' and 
                        inserting ``future, option, or spot 
                        transaction''; and
                    (C) by striking ``the Securities Act of 1933, the 
                Securities Exchange Act of 1934, the Public Utility 
                Holding Company Act of 1935, the Trust Indenture Act of 
                1939, the Investment Company Act of 1940, the 
                Investment Advisers Act of 1940, the Securities 
                Investor Protection Act of 1970, the Commodity Exchange 
                Act, the Gramm-Leach-Bliley Act, and the Legal 
                Certainty for Bank Products Act of 2000'' and inserting 
                ``the Gramm-Leach-Bliley Act, the Legal Certainty for 
                Bank Products Act of 2000, the securities laws (as such 
                term is defined in section 3(a)(47) of the Securities 
                Exchange Act of 1934) and the Commodity Exchange Act''.

SEC. 3. CLARIFYING AMENDMENTS RELATING TO DEFINITION OF PERSON.

    (a) FDIC-INSURED Depository Institutions Definition of Person.--
Section 11(e)(8)(D) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)) is amended by adding at the end the following:
                    ``(ix) Person.--The term `person' includes any 
                governmental entity in addition to any entity included 
                in the definition of such term in section 1 of title 1, 
                United States Code.''.
    (b) Insured Credit Unions Definition of Person.--Section 
207(c)(8)(D) of the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) 
is amended by adding at the end the following:
                            ``(ix) Person.--The term `person' includes 
                        any governmental entity in addition to any 
                        entity included in the definition of such term 
                        in section 1 of title 1, United States Code.''.

SEC. 4. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 1991.

    (a) Enforceability of Bilateral Netting Contracts.--Section 403 of 
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4403) is amended--
            (1) in each of subsections (a) and (f), by striking 
        ``paragraphs (8)(E), (8)(F), and (10)(B) of'' each place such 
        term appears; and
            (2) in subsection (a), by inserting ``terminated, 
        liquidated, accelerated, and'' after ``institutions shall be''.
    (b) Enforceability of Clearing Organization Netting Contracts.--
Section 404 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4404) is amended--
            (1) in each of subsections (a) and (h), by striking 
        ``paragraphs (8)(E), (8)(F), and (10)(B) of'' each place such 
        term appears; and
            (2) in subsection (a), by inserting ``terminated, 
        liquidated, accelerated, and'' after ``organization shall be''.

SEC. 5. CONFORMING AMENDMENTS.

    (a) Clarifying Definitions.--Title 11, United States Code, is 
amended--
            (1) in section 101--
                    (A) in paragraph (22)(A)--
                            (i) by striking ``(domestic or foreign)'' 
                        after ``an entity''; and
                            (ii) by inserting ``(whether or not a 
                        `customer', as defined in section 741)'' after 
                        ``custodian for a customer'';
                    (B) in paragraph (22A)--
                            (i) by striking ``on any day during the 
                        previous 15-month period'' each place it 
                        appears and inserting ``at such time or on any 
                        day during the 15-month period preceding the 
                        date of the filing of the petition''; and
                            (ii) by inserting ``(aggregated across 
                        counterparties)'' after ``principal amount 
                        outstanding'';
                    (C) in paragraph (25)(A)--
                            (i) by inserting ``, as defined in section 
                        761'' after ``commodity contract''; and
                            (ii) by striking ``repurchase transaction, 
                        reverse repurchase transaction,'' and inserting 
                        ``repurchase or reverse repurchase transaction 
                        (whether or not such repurchase or reverse 
                        repurchase transaction is a `repurchase 
                        agreement', as defined in this section)'';
                    (D) in paragraph (53B)(A)--
                            (i) in clause (i)--
                                    (I) in subclause (II), by striking 
                                ``or precious metals'' and inserting 
                                ``, precious metals, or other 
                                commodity'';
                                    (II) in subclause (VII), by 
                                striking ``or'' at the end;
                                    (III) in subclause (VIII), by 
                                striking ``weather derivative, or 
                                weather option'' and inserting 
                                ``option, future, or forward 
                                agreement''; and
                                    (IV) by adding at the end the 
                                following:
                                    ``(IX) an emissions swap, option, 
                                future, or forward agreement; or
                                    ``(X) an inflation swap, option, 
                                future, or forward agreement;''; and
                            (ii) in clause (ii)--
                                    (I) in subclause (I), by inserting 
                                ``or other derivatives'' after 
                                ``dealings in the swap''; and
                                    (II) in subclause (II), by striking 
                                ``future, or option'' and inserting 
                                ``future, option, or spot 
                                transaction''; and
                    (E) in paragraph (53B)(B), by striking ``the 
                Securities Act of 1933, the Securities Exchange Act of 
                1934, the Public Utility Holding Company Act of 1935, 
                the Trust Indenture Act of 1939, the Investment Company 
                Act of 1940, the Investment Advisers Act of 1940, the 
                Securities Investor Protection Act of 1970, the 
                Commodity Exchange Act, the Gramm-Leach-Bliley Act, and 
                the Legal Certainty for Bank Products Act of 2000'' and 
                inserting ``the Gramm-Leach-Bliley Act, the Legal 
                Certainty for Bank Products Act of 2000, the securities 
                laws (as such term is defined in section 3(a)(47) of 
                the Securities Exchange Act of 1934) and the Commodity 
                Exchange Act'';
            (2) in section 362(b)--
                    (A) by striking paragraphs (6) and (7) and 
                inserting the following:
            ``(6) under subsection (a) of this section, of the exercise 
        by a commodity broker, forward contract merchant, stockbroker, 
        financial institution, financial participant, or securities 
        clearing agency of any contractual right (as defined in section 
        555 or 556) under any security agreement or arrangement or 
        other credit enhancement forming a part of or related to any 
        commodity contract, forward contract or securities contract, or 
        of any contractual right (as defined in section 555 or 556) to 
        offset or net out any termination value, payment amount, or 
        other transfer obligation arising under or in connection with 1 
        or more such contracts, including any master agreement for such 
        contracts;
            ``(7) under subsection (a) of this section, of the exercise 
        by a repo participant or financial participant of any 
        contractual right (as defined in section 559) under any 
        security agreement or arrangement or other credit enhancement 
        forming a part of or related to any repurchase agreement, or of 
        any contractual right (as defined in section 559) to offset or 
        net out any termination value, payment amount, or other 
        transfer obligation arising under or in connection with 1 or 
        more such agreements, including any master agreement for such 
        agreements;'';
                    (B) by striking paragraph (17) and inserting the 
                following:
            ``(17) under subsection (a) of this section, of the 
        exercise by a swap participant or financial participant of any 
        contractual right (as defined in section 560) under any 
        security agreement or arrangement or other credit enhancement 
        forming a part of or related to any swap agreement, or of any 
        contractual right (as defined in section 560) to offset or net 
        out any termination value, payment amount, or other transfer 
        obligation arising under or in connection with 1 or more such 
        agreements, including any master agreement for such 
        agreements;''; and
                    (C) by striking paragraph (27) and inserting the 
                following:
            ``(27) under subsection (a) of this section, of the 
        exercise by a master netting agreement participant of any 
        contractual right (as defined in section 555, 556, 559, or 560) 
        under any security agreement or arrangement or other credit 
        enhancement forming a part of or related to any master netting 
        agreement, or of any contractual right (as defined in section 
        555, 556, 559, or 560) to offset or net out any termination 
        value, payment amount, or other transfer obligation arising 
        under or in connection with 1 or more such master netting 
        agreements to the extent that such participant is eligible to 
        exercise such rights under paragraph (6), (7), or (17) for each 
        individual contract covered by the master netting agreement in 
        issue; and''; and
            (3) in section 741(7)(A)--
                    (A) in clause (i)--
                            (i) by striking ``mortgage loan or'' and 
                        inserting ``mortgage loan,''; and
                            (ii) by inserting before the semicolon 
                        ``(whether or not such repurchase or reverse 
                        repurchase transaction is a `repurchase 
                        agreement', as defined in section 101)'';
                    (B) in clause (iii)--
                            (i) by inserting ``(including by 
                        novation)'' after ``the guarantee''; and
                            (ii) by inserting before the semicolon 
                        ``(whether or not such settlement is in 
                        connection with any agreement or transaction 
                        referred to in clauses (i) through (xi))'';
                    (C) in clause (viii), by striking ``or (vii)'' each 
                place it appears and inserting ``(vii), (viii), or 
                (ix)'';
                    (D) by redesignating clauses (v) through (ix) as 
                clauses (vii) through (xi), respectively; and
                    (E) by inserting after clause (iv) the following:
                                    ``(v) any extension of credit for 
                                the clearance or settlement of 
                                securities transactions;
                                    ``(vi) any loan transaction coupled 
                                with a securities collar transaction, 
                                any prepaid forward securities 
                                transaction, or any total return swap 
                                transaction coupled with a securities 
                                sale transaction;''.
    (b) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, is amended--
            (1) in subsection (e)--
                    (A) by inserting ``(or for the benefit of)'' before 
                ``a commodity broker''; and
                    (B) by inserting ``or that is a transfer made by or 
                to (or for the benefit of) a commodity broker, forward 
                contract merchant, stockbroker, financial institution, 
                financial participant, or securities clearing agency, 
                in connection with a securities contract, as defined in 
                section 741(7), commodity contract, as defined in 
                section 761(4), or forward contract,'' after 
                ``securities clearing agency,'';
            (2) in subsection (f)--
                    (A) by striking ``that is a margin payment, as 
                defined in section 741 or 761 of this title, or 
                settlement payment, as defined in section 741 of this 
                title,''; and
                    (B) by inserting ``(or for the benefit of)'' before 
                ``a repo participant'';
            (3) in subsection (g), by inserting ``(or for the benefit 
        of)'' before ``a swap participant''; and
            (4) in subsection (j), by inserting ``(or for the benefit 
        of)'' after ``made by or to''.
    (c) SIPC Stay.--Section 5(b)(2)(C)(iii) of the Securities Investor 
Protection Act of 1970 (15 U.S.C. 78eee(b)(2)(C)(iii)) is amended--
            (1) by inserting ``a derivatives clearing organization (as 
        defined in the Commodity Exchange Act), a multilateral clearing 
        organization (as defined in the Federal Deposit Insurance 
        Corporation Improvement Act of 1991),'' after ``rule or bylaw 
        of''; and
            (2) by striking ``or a securities clearance agency, a right 
        set forth in a bylaw of a clearing organization or contract 
        market'' and inserting ``a securities clearing agency, a 
        contract market designated under the Commodity Exchange Act, a 
        derivatives transaction execution facility registered under the 
        Commodity Exchange Act, or a board of trade (as defined in the 
        Commodity Exchange Act),''.
    (d) Savings Clause.--Title IX of the Bankruptcy Abuse Prevention 
and Consumer Protection Act of 2005 (Public Law 109-8, 119 Stat. 146) 
is amended by adding at the end the following:

``SEC. 912. SAVINGS CLAUSE.

    ``The meanings of terms used in this title are applicable for the 
purposes of this title 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 (as such term is defined 
in section 3(a)(47) of the Securities Exchange Act of 1934), and the 
Commodity Exchange Act.''.

SEC. 6. WALKAWAY CLAUSES.

    (a) FDIC-Insured Depository Institutions.--Section 11(e)(8)(G) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(G)) is amended 
by striking clause (ii) and inserting the following new clauses:
                            ``(ii) Limited suspension of certain 
                        obligations.--In the case of a qualified 
                        financial contract referred to in clause (i), 
                        any payment or delivery obligations otherwise 
                        due from a party pursuant to the qualified 
                        financial contract shall be suspended from the 
                        time the receiver is appointed until the 
                        earlier of--
                                    ``(I) the time such party receives 
                                notice that such contract has been 
                                transferred pursuant to subparagraph 
                                (A); or
                                    ``(II) 5:00 p.m. (eastern time) on 
                                the business day following the date of 
                                the appointment of the receiver.
                            ``(iii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means any provision in a 
                        qualified financial contract that suspends, 
                        conditions, or extinguishes a payment 
                        obligation of a party, in whole or in part, or 
                        does not create a payment obligation of a party 
                        that would otherwise exist, solely because of 
                        such party's status as a nondefaulting party in 
                        connection with the insolvency of an insured 
                        depository institution that is a party to the 
                        contract or the appointment of or the exercise 
                        of rights or powers by a conservator or 
                        receiver of such depository institution, and 
                        not as a result of a party's exercise of any 
                        right to offset, setoff, or net obligations 
                        that exist under the contract, any other 
                        contract between those parties, or applicable 
                        law.''.
    (b) Insured Credit Unions.--Section 207(c)(8)(G) of the Federal 
Credit Union Act 12 U.S.C. 1787(c)(8)(G)) is amended by striking clause 
(ii) and inserting the following new clauses:
                            ``(ii) Limited suspension of certain 
                        obligations.--In the case of a qualified 
                        financial contract referred to in clause (i), 
                        any payment or delivery obligations otherwise 
                        due from a party pursuant to the qualified 
                        financial contract shall be suspended from the 
                        time the liquidating agent is appointed until 
                        the earlier of--
                                    ``(I) the time such party receives 
                                notice that such contract has been 
                                transferred pursuant to subparagraph 
                                (A); or
                                    ``(II) 5:00 p.m. (eastern time) on 
                                the business day following the date of 
                                the appointment of the liquidating 
                                agent.
                            ``(iii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means any provision in a 
                        qualified financial contract that suspends, 
                        conditions, or extinguishes a payment 
                        obligation of a party, in whole or in part, or 
                        does not create a payment obligation of a party 
                        that would otherwise exist, solely because of 
                        such party's status as a nondefaulting party in 
                        connection with the insolvency of an insured 
                        credit union or the appointment of or the 
                        exercise of rights or powers by a conservator 
                        or liquidating agent of such credit union, and 
                        not as a result of a party's exercise of any 
                        right to offset, setoff, or net obligations 
                        that exist under the contract, any other 
                        contract between those parties, or applicable 
                        law.''.

SEC. 7. COMPENSATION OF CHAPTER 7 TRUSTEES; CHAPTER 7 FILING FEES.

    (a) Amendments to Title 11 of the United States Code.--
            (1) Compensation of chapter 7 trustees.--Section 330(b)(1) 
        of title 11, United States Code, is amended--
                    (A) by striking ``$45'' and inserting ``$100'', and
                    (B) by inserting before the period at the end the 
                following:
``, except that such amount shall be adjusted by the amount (if any) of 
such filing fee waived under the 2d sentence of section 1930(f)(1) of 
title 28''.
            (2) Related amendments.--Section 330(b) of title 11, United 
        States Code, is amended--
                    (A) by striking ``(1)'', and
                    (B) by striking paragraph (2).
    (b) Amendments to Title 28 of the United States Code.--
            (1) Chapter 7 filing fee.--Section 1930 of title 28 of the 
        United States Code, as amended by section 10101 of Public Law 
        109-171, is amended--
                    (A) in subsection (a)(1)(A) by striking ``$245'' 
                and inserting ``$300'', and
                    (B) in subsection (f)(1) by inserting after the 1st 
                sentence the following:
``Under the procedures prescribed by the Judicial Conference of the 
United States, the district court or the bankruptcy court shall waive 
$40 of the filing fee required by subsection (a) in a case under 
chapter 7 of title 11 for an individual if the court determines that 
such individual has income not less than 150 percent, and not more than 
175 percent, of the income official poverty line (as defined by the 
Office of Management and Budget, and revised annually in accordance 
with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) 
applicable to a family of the size involved.''.
            (2) United states trustee fund.--Section 589a(b)(1)(A) of 
        title 28, United States Code, is amended by striking ``40.46 
        percent of the fees collected under section 1930(a)(1)(A)'' and 
        inserting ``29.67 percent of the sum of the amount of fees 
        collected under section 1930(a)(1)(A) and the amount of fees 
        waived under the 2d sentence of section 1930(f)(1)''.
    (c) Related Amendment Regarding Collections and Deposits of 
Miscellaneous Bankruptcy Fees.--Section 406(b) of the Judiciary 
Appropriations Act, 1990 (28 U.S.C. 1931 note) is amended by striking 
``28.87 percent of the fees collected under section 1930(a)(1)(A) of 
that title'' and inserting ``21.17 percent of the sum of the amount of 
fees collected under section 1930(a)(1)(A) of that title and the amount 
of fees waived under the 2d sentence of section 1930(f)(1)) of that 
title''.
    (d) Conforming Amendment.--Section 10101(a) of Public Law 109-171 
is amended by striking paragraph (2).
    (e) Effective Date; Application of Amendments.--The amendments made 
by this section shall take effect 120 days after the date of the 
enactment of this Act and shall not apply with respect to cases 
commenced under title 11 of the United States Code before the date such 
amendments take effect.

SEC. 8. SCOPE OF APPLICATION.

    Subject to section 7(e), the amendments made by this Act shall not 
apply to any cases commenced under title 11, United States Code, or 
appointments made under any Federal or State law, before the date of 
the enactment of this Act.

            Passed the House of Representatives September 27, 2006.

            Attest:

                                                                 Clerk.
109th CONGRESS

  2d Session

                               H. R. 5585

_______________________________________________________________________

                                 AN ACT

 To improve the netting process for financial contracts, and for other 
                               purposes.
```