(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 Invest-
ment Company Act of 1940, the Investment 
Advisers Act of 1940, the Securities Investor 
Protection Act of 1970, the Commodity Ex-
change 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 de-
fined in section 3(a)(47) of the Securities Ex-
change Act of 1934) and the Commodity Ex-
change Act’’. 
SEC. 3. CLARIFYING AMENDMENTS RELATING TO DEFINI-
TION 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: 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
‘‘(ix) PERSON.—The term ‘person’ includes 
any governmental entity in addition to any enti-
ty included in the definition of such term in 
section 1 of title 1, United States Code.’’. 
(b) INSURED CREDIT UNIONS DEFINITION OF PER-
SON.—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’ in-
cludes 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 IM-
PROVEMENT ACT OF 1991. 
(a) ENFORCEABILITY OF BILATERAL NETTING CON-
TRACTS.—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 strik-
ing ‘‘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’’. 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
(b) ENFORCEABILITY OF CLEARING ORGANIZATION 
NETTING CONTRACTS.—Section 404 of the Federal De-
posit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4404) is amended— 
(1) in each of subsections (a) and (h), by strik-
ing ‘‘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 pre-
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
ceding the date of the filing of the peti-
tion’’; and 
(ii) by inserting ‘‘(aggregated across 
counterparties)’’ after ‘‘principal amount 
outstanding’’; 
(C) in paragraph (25)(A)— 
(i) by inserting ‘‘, as defined in sec-
tion 761’’ after ‘‘commodity contract’’; and 
(ii) by striking ‘‘repurchase trans-
action, reverse repurchase transaction,’’ 
and inserting ‘‘repurchase or reverse re-
purchase transaction (whether or not such 
repurchase or reverse repurchase trans-
action is a ‘repurchase agreement’, as de-
fined 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 strik-
ing ‘‘or’’ at the end; 
(III) in subclause (VIII), by 
striking ‘‘weather derivative, or weath-
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
er option’’ and inserting ‘‘option, fu-
ture, or forward agreement’’; and 
(IV) by adding at the end the fol-
lowing: 
‘‘(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 ‘‘fu-
ture, option, or spot transaction’’; and 
(E) in paragraph (53B)(B), by striking 
‘‘the Securities Act of 1933, the Securities Ex-
change 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 Secu-
rities Investor Protection Act of 1970, the Com-
modity Exchange Act, the Gramm-Leach-Bliley 
Act, and the Legal Certainty for Bank Products 
Act of 2000’’ and inserting ‘‘the Gramm-Leach- 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
Bliley Act, the Legal Certainty for Bank Prod-
ucts Act of 2000, the securities laws (as such 
term is defined in section 3(a)(47) of the Secu-
rities Exchange Act of 1934) and the Com-
modity 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, finan-
cial 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 re-
lated 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 partici-
pant of any contractual right (as defined in section 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
559) under any security agreement or arrangement 
or other credit enhancement forming a part of or re-
lated to any repurchase agreement, or of any con-
tractual right (as defined in section 559) to offset or 
net out any termination value, payment amount, or 
other transfer obligation arising under or in connec-
tion with 1 or more such agreements, including any 
master agreement for such agreements;’’; 
(B) by striking paragraph (17) and insert-
ing the following: 
‘‘(17) under subsection (a) of this section, of 
the exercise by a swap participant or financial par-
ticipant of any contractual right (as defined in sec-
tion 560) under any security agreement or arrange-
ment or other credit enhancement forming a part of 
or related to any swap agreement, or of any contrac-
tual right (as defined in section 560) to offset or net 
out any termination value, payment amount, or 
other transfer obligation arising under or in connec-
tion with 1 or more such agreements, including any 
master agreement for such agreements;’’; and 
(C) by striking paragraph (27) and insert-
ing the following: 
‘‘(27) under subsection (a) of this section, of 
the exercise by a master netting agreement partici-
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
pant of any contractual right (as defined in section 
555, 556, 559, or 560) under any security agree-
ment 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 net-
ting 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 re-
verse repurchase transaction is a ‘repur-
chase agreement’, as defined in section 
101)’’; 
(B) in clause (iii)— 
(i) by inserting ‘‘(including by nova-
tion)’’ after ‘‘the guarantee’’; and 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
(ii) by inserting before the semicolon 
‘‘(whether or not such settlement is in con-
nection 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 fol-
lowing: 
‘‘(v) any extension of credit for 
the clearance or settlement of securi-
ties transactions; 
‘‘(vi) any loan transaction cou-
pled with a securities collar trans-
action, 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)— 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
(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 com-
modity broker, forward contract merchant, 
stockbroker, financial institution, financial par-
ticipant, or securities clearing agency, in con-
nection 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 Secu-
rities Investor Protection Act of 1970 (15 U.S.C. 
78eee(b)(2)(C)(iii)) is amended— 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
(1) by inserting ‘‘a derivatives clearing organi-
zation (as defined in the Commodity Exchange Act), 
a multilateral clearing organization (as defined in 
the Federal Deposit Insurance Corporation Improve-
ment Act of 1991),’’ after ‘‘rule or bylaw of’’; and 
(2) by striking ‘‘or a securities clearance agen-
cy, a right set forth in a bylaw of a clearing organi-
zation or contract market’’ and inserting ‘‘a securi-
ties 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 applica-
ble for the purposes of this title only, and shall not be 
construed or applied so as to challenge or affect the char-
acterization, 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 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS
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 CER-
TAIN
OBLIGATIONS.—In the case of a 
qualified financial contract referred to in 
clause (i), any payment or delivery obliga-
tions otherwise due from a party pursuant 
to the qualified financial contract shall be 
suspended from the time the receiver is ap-
pointed 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
DE-
FINED.—For purposes of this subpara-
graph, the term ‘walkaway clause’ means 
VerDate Aug 31 2005 
03:40 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5585.IH
H5585
hmoore on PROD1PC68 with HMBILLS