‘‘(B) includes any person described in sub-
paragraph (A) which operates, or operates as, a
multilateral clearing organization pursuant to
section 409 of the Federal Deposit Insurance
Corporation Improvement Act of 1991;’’.
(4) SUBCHAPTER V OF CHAPTER 7.—
(A) IN GENERAL.—Section 103 of title 11,
United States Code, is amended—
(i) by redesignating subsections (e)
through (i) as subsections (f) through (j),
respectively; and
(ii) by inserting after subsection (d)
the following new subsection:
‘‘(e) SCOPE
OF APPLICATION.—Subchapter V of
chapter 7 of this title shall apply only in a case under
such chapter concerning the liquidation of a bank or a
corporation organized under section 25A of the Federal
Reserve Act which operates, or operates as, a multilateral
clearing organization pursuant to section 409 of the Fed-
eral Deposit Insurance Corporation Improvement Act of
1991.’’.
(B) 
CLEARING
BANK
LIQUIDATION.—
Chapter 7 of title 11, United States Code, is
amended by adding at the end the following
new subchapter:
‘‘Subchapter V—Clearing Bank Liquidation
‘‘§ Sec. 781. Definitions.
‘‘For purposes of this subchapter, the following defi-
nitions shall apply:
‘‘(1) BOARD.—The term ‘Board’ means the
Board of Governors of the Federal Reserve System.
‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’ has the same meaning as in sec-
tion 3 of the Federal Deposit Insurance Act, and in-
cludes any wholesale bank.
‘‘(3) CLEARING
BANK.—The term ‘clearing
bank’ means a national or State bank, or a corpora-
tion organized under section 25A of the Federal Re-
serve Act, which operates, or operates as, a multilat-
eral clearing organization pursuant to section 409 of
the Federal Deposit Insurance Corporation Improve-
ment Act of 1991.
‘‘§ Sec. 782. Selection of trustee
‘‘(a) IN GENERAL.—
‘‘(1) 
APPOINTMENT.—Notwithstanding 
any
other provision of this title, the conservator or re-
ceiver who files the petition shall be the trustee
under this chapter, unless the Comptroller of the
Currency (in the case of a clearing bank for which
the Comptroller of the Currency appointed a conser-
vator or receiver) or the Board (in the case of any
clearing bank for which the Board appointed a con-
servator or receiver) designates an alternative trust-
ee.
‘‘(2) SUCCESSOR.—The Comptroller of the Cur-
rency or the Board of Governors of the Federal Re-
serve System (as the case may be) may designate a
successor trustee, if required.
‘‘(b) AUTHORITY
OF
TRUSTEE.—Whenever the
Comptroller of the Currency or the Board appoints or des-
ignates a trustee, chapter 3 and sections 704 and 705 of
this title shall apply to the Comptroller or the Board, as
applicable, in the same way and to the same extent that
they apply to a United States trustee.
‘‘§ Sec. 783. Additional powers of trustee
‘‘(a) DISTRIBUTION OF NONESTATE PROPERTY.—
The trustee under this subchapter has power to distribute
property not of the estate, including distributions to cus-
tomers that are mandated by subchapters III and IV of
this chapter.
‘‘(b) DISPOSITION
OF INSTITUTION.—The trustee
under this subchapter may, after notice and a hearing—
‘‘(1) sell the clearing bank to a depository insti-
tution or consortium of depository institutions
(which consortium may agree on the allocation of
the clearing bank among the consortium);
‘‘(2) merge the clearing bank with a depository
institution;
‘‘(3) transfer contracts to the same extent as
could a receiver for a depository institution under
paragraphs (9) and (10) of section 11(e) of the Fed-
eral Deposit Insurance Act;
‘‘(4) transfer assets or liabilities to a depository
institution;
‘‘(5) transfer assets and liabilities to a bridge
bank as provided in paragraphs (1), (3)(A), (5), (6),
of section 11(n) of the Federal Deposit Insurance
Act, paragraphs (9) through (13) of such section,
and subparagraphs (A) through (H) and subpara-
graph (K) of paragraph (4) of such section 11(n),
except that—
‘‘(A) the bridge bank to which such assets
or liabilities are transferred shall be treated as
a clearing bank for the purpose of this sub-
section; and
‘‘(B) any references in any such provision
of law to the Federal Deposit Insurance Cor-
poration shall be construed to be references to
the appointing agency and that references to
deposit insurance shall be omitted.
‘‘(c) CERTAIN TRANSFERS INCLUDED.—Any ref-
erence in this section to transfers of liabilities includes a
ratable transfer of liabilities within a priority class.
‘‘§ Sec. 784. Right to be heard
‘‘The Comptroller of the Currency (in the case of a
clearing bank for which the Comptroller of the Currency
appointed a conservator or receiver), the Board of Gov-
ernors of the Federal Reserve System (in the case of any
clearing bank for which the Board appointed a conservator
or receiver), or a Federal reserve bank (in the case of a
clearing bank that is a member of that bank) may raise
and may appear and be heard on any issue in a case under
this subchapter.’’.
(c) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 7 of title 11, United States Code, is
amended by adding at the end the following new items:
‘‘Subchapter V—Clearing Bank Liquidation
‘‘Sec.
‘‘781. Definitions.
‘‘782. Selection of trustee.
‘‘783. Additional powers of trustee.
‘‘784. Right to be heard.’’.
(d) RESOLUTION OF EDGE ACT CORPORATIONS.—
The 16th undesignated paragraph of section 25A of the
Federal Reserve Act (12 U.S.C. 624) is amended to read
as follows:
‘‘(16) APPOINTMENT OF RECEIVER OR CONSER-
VATOR.—
‘‘(A) IN GENERAL.—The Board may ap-
point a conservator or receiver for a corporation
organized under the provisions of this section to
the same extent and in the same manner as the
Comptroller of the Currency may appoint a con-
servator or receiver for a national bank, and the
conservator or receiver for such corporation
shall exercise the same powers, functions, and
duties, subject to the same limitations, as a
conservator or receiver for a national bank.
‘‘(B) 
EQUIVALENT
AUTHORITY.—The
Board shall have the same authority with re-
spect to any conservator or receiver appointed
for a corporation organized under the provisions
of this section under this paragraph and any
such corporation as the Comptroller of the Cur-
rency has with respect to a conservator or re-
ceiver of a national bank and the national bank
for which a conservator or receiver has been ap-
pointed.
‘‘(C) TITLE
PETITIONS.—The Board
may direct the conservator or receiver of a cor-
poration organized under the provisions of this
section to file a petition pursuant to title 11,
United States Code, in which case, title 11,
United States Code, shall apply to the corpora-
tion in lieu of otherwise applicable Federal or
State insolvency law.’’.
SEC. 7. RELATION TO STATE LAW.
No state or local law that prohibits or regulates gam-
ing or the operation of ‘‘bucket shops’’ (other than anti-
fraud provisions of general applicability) shall be deemed
to govern or be in any way applicable to any over-the-
counter derivative instrument (as defined in section
408(2) of the Federal Deposit Insurance Corporation Im-
provement Act of 1991) to which a financial institution
(as defined in or under section 402(9) of such Act or in
or under section 509(3)(A) of the Gramm-Leach-Bliley
Act) is a party.
Æ