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person by the time specified in subpara-
graphs (A) and (B)(i)(I) of this subsection.
‘‘(iii) EXCEPTION TO RIGHT OF CON-
TRACTING PARTY TO NET OR CLOSE OUT
CONTRACTS.—A person who is a party to
a qualified financial contract with an in-
sured depository institution may not exer-
cise any right such person has to net or
close out such contract under paragraph
(8)(E) or sections 403 or 404 of the Fed-
eral Deposit Insurance Corporation Im-
provement Act of 1991, solely by reason of
the appointment of a conservator for the
depository institution.
‘‘(C) TREATMENT
OF
BRIDGE
BANKS.—
The following institutions shall not be consid-
ered depository institutions in default for pur-
poses of subsection(e)(9):
‘‘(i) A bridge bank.
‘‘(ii) An institution organized by the
Corporation, for which a conservator is ap-
pointed either, (I) immediately upon the
organization of the institution, or (II) at
the time of a purchase and assumption
transaction between such institution and
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the Corporation as receiver for a failed de-
pository institution.’’.
SEC. 304. CLARIFYING AMENDMENT RELATING TO MASTER
AGREEMENTS.
Section 11(e)(8)(D)(vii) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(e)(8)(D)(vii)) is amended to
read as follows:
‘‘(vii) 
TREATMENT
OF
MASTER
AGREEMENT
AS
ONE
AGREEMENT.—Any
master agreement for any contract or
agreement described in any preceeding
clause of this subparagraph (or any master
agreement for such master agreement or
agreements), together with all supplements
to such master agreement, shall be treated
as a single agreement and a single quali-
fied financial contract.’’.
SEC. 305. QUALIFIED FINANCIAL CONTRACTS.
(a) DEFINITION
OF QUALIFIED FINANCIAL CON-
TRACT.—Section 11(e)(8)(D) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(e)(8)(D)) is amended—
(1) in clause (iv), by striking ‘‘(24)’’ and insert-
ing ‘‘(25)’’; and
(2) in clause (v), by striking ‘‘101(41)’’ and in-
serting ‘‘101(47)’’.
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(b) FEDERAL DEPOSIT INSURANCE CORPORATION
IMPROVEMENT
ACT
OF
1991.—Sections 403(a) and
404(a) of the Federal Deposit Insurance Corporation Im-
provement Act of 1991 (12 U.S.C. 4403(a), 4404(a)) are
each amended by inserting ‘‘other than paragraphs (8)(E)
and (10)(B) of section 11(e) of the Federal Deposit Insur-
ance Act’’ after ‘‘other provisions of law’’.
SEC. 306. TECHNICAL AND CONFORMING AMENDMENTS.
(a) DEFINITION
OF SWAP AGREEMENT.—Section
101 of title 11, United States Code, is amended in para-
graph (53B)—
(1) by inserting ‘‘equity or equity index swap,
equity or equity index option, bond option,’’ after
‘‘basis swap,’’;
(2) by inserting ‘‘interest rate future,’’ after
‘‘commodity swap,’’; and
(3) by inserting ‘‘currency future,’’ after ‘‘cross-
currency rate swap agreement,’’.
(b) DEFINITION OF MASTER NETTING AGREEMENT
AND MASTER NETTING AGREEMENT PARTICIPANT.—Sec-
tion 101 of title 11, United States Code, is amended by
adding, after paragraph (38), the following new para-
graphs:
‘‘(38A) ‘master netting agreement’ means an
agreement providing for the exercise of rights, in-
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cluding rights of setoff, liquidation, termination, ac-
celeration, or closeout, in connection with one or
more contracts with the debtor that are described in
paragraphs (1) through (5) of section 561(a);
‘‘(38B) ‘master netting agreement participant’
means an entity that, at any time before the filing
of the petition, has an outstanding master netting
agreement with the debtor.’’.
(c) MASTER
AGREEMENTS
UNDER
THE
AUTO-
STAY.—Section 362(b)(17) of title 11, United States
Code, is amended to read as follows:
‘‘(17) under subsection (a), of the setoff by a
swap participant or master netting agreement par-
ticipant of any mutual debt and claim under or in
connection with any swap agreement or master net-
ting agreement that constitutes the setoff of a claim
against the debtor for any payment due from the
debtor under or in connection with any such agree-
ment against—
‘‘(A) any payment due to the debtor from
such participant under or in connection with
any such agreement; or
‘‘(B) cash, securities, or other property of
the debtor held by or due from such participant
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to guarantee, secure or settle any such agree-
ment.’’.
(d) LIMITATION
OF AVOIDANCE POWERS UNDER
MASTER NETTING AGREEMENT.—Section 546(g) of title
11, United States Code, is amended—
(1) by inserting ‘‘or a master netting agree-
ment’’ after ‘‘under a swap agreement’’;
(2) by inserting ‘‘or a master netting agreement
participant’’ after ‘‘swap participant’’; and
(3) by inserting ‘‘or any master netting agree-
ment’’ after ‘‘with a swap agreement’’.
(e) FRAUDULENT TRANSFERS OF MASTER NETTING
AGREEMENTS.—Section 548(d)(2) of title 11, United
States Code, is amended—
(1) in subparagraph (C), by striking ‘‘and’’;
(2) in subparagraph (D), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(E) a master netting agreement participant
that receives a transfer in connection with a master
netting agreement takes for value to the extent of
such transfer.’’.