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(f) TERMINATION OR ACCELERATION OF SECURITIES
CONTRACTS.—Section 555 of title 11, United States Code,
is amended—
(1) in the section heading, by inserting ‘‘, ter-
minate, or accelerate’’ after ‘‘liquidate’’; and
(2) in the first sentence, by inserting ‘‘, termi-
nation, or acceleration’’ after ‘‘liquidation’’.
(g) TERMINATION OR ACCELERATION OF COMMOD-
ITIES OR FORWARD CONTRACTS.—Section 556 of title 11,
United States Code, is amended—
(1) in the section heading, by inserting ‘‘, ter-
minate, or accelerate’’ after ‘‘liquidate’’; and
(2) in the first sentence, by inserting ‘‘, termi-
nation, or acceleration’’ after ‘‘liquidation’’.
(h) TERMINATION
OR ACCELERATION
OF REPUR-
CHASE AGREEMENTS.—Section 559 of title 11, United
States Code, is amended—
(1) in the section heading, by inserting ‘‘, ter-
minate, or accelerate’’ after ‘‘liquidate’’; and
(2) in the first sentence, by inserting ‘‘, termi-
nation, or acceleration’’ after ‘‘liquidation’’.
(i) LIQUIDATION, TERMINATION OR ACCELERATION
OF SWAP AGREEMENTS.—Section 560 of title 11, United
States Code, is amended—
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(1) in the section heading, by striking ‘‘termi-
nate’’ and inserting ‘‘liquidate, terminate, or acceler-
ate’’; and
(2) in the first sentence, by striking ‘‘termi-
nation’’ and inserting ‘‘liquidation, termination, or
acceleration’’.
(j) LIQUIDATION, TERMINATION, ACCELERATION, OR
OFFSET UNDER
A MASTER NETTING AGREEMENT.—
Chapter 5 of title 11, United States Code, is amended by
adding at the end of the following new section:
‘‘SEC. 561. CONTRACTUAL RIGHT TO TERMINATE, LIQ-
UIDATE, ACCELERATE, OR OFFSET UNDER A
MASTER NETTING AGREEMENT.
‘‘(a) IN GENERAL.—Subject to subsection (b), the ex-
ercise of any contractual right, because of a condition of
the kind specified in section 365(e)(1), to cause termi-
nation, liquidation, acceleration, offset, or netting of val-
ues or payment amounts arising under or in connection
with one or more—
‘‘(1) securities contracts, as defined in section
741(7);
‘‘(2) commodities contracts, as defined in sec-
tion 761(4);
‘‘(3) forward contracts;
‘‘(4) repurchase agreements; or
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‘‘(5) swap agreements;
under a master netting agreement covering such contracts
shall not be stayed, avoided, or otherwise limited by oper-
ation of any provision of this title or by any order of a
court or administrative agency in any proceeding under
this title.
‘‘(b) EXCEPTION.—A party may exercise a contrac-
tual right described in subsection (a) only if that party
could exercise such a right under section 555, 556, 559,
or 560 for each individual contract covered by the master
netting agreement in issue.
‘‘(c) DEFINITION.—As used in this section, the term
‘contractual right’ includes, but is not limited to, a right
set forth in a rule or bylaw of a national securities ex-
change, a national securities association or a securities
clearing agency, and a right set forth in a bylaw of a clear-
ing organization or contract market or in a resolution of
the governing board thereof.’’.
(k) MUNICIPAL BANKRUPTCIES.—Section 901 of title
11, United States Code, is amended—
(1) by inserting ‘‘555, 556,’’ after ‘‘553,’’; and
(2) by inserting ‘‘559, 560 561’’ after ‘‘557,’’.
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SEC. 307. COLLATERALIZATION OF QUALIFIED FINANCIAL
CONTRACTS AND CERTAIN OTHER LIABIL-
ITIES.
Section 13(e) of the Federal Deposit Insurance Act
(12 U.S.C. 1823(e)) is amended by striking paragraph (2)
and adding the following new paragraph:
‘‘(2) EXEMPTIONS
FROM
CONTEMPORANEOUS
EXECUTION REQUIREMENT.—An agreement to pro-
vide for the lawful collateralization of—
‘‘(A) deposits of, or other credit extension
by, a Federal, state, or local governmental en-
tity, or of any depositor referred to in section
11(a)(2), including an agreement to provide col-
lateral in lieu of a surety bond;
‘‘(B) bankruptcy estate funds pursuant to
section 345(b)(2) of title 11, United States
Code;
‘‘(C) extensions of credit, including any
overdraft, from a Federal Reserve Bank or
Federal Home Loan Bank; or
‘‘(D) a qualified financial contract, as de-
fined in section 1821(e)(8)(D); shall not be
deemed to be invalid pursuant to paragraph
(1)(B) solely because such agreement was not
executed contemporaneously with the acquisi-
tion of the collateral or because of pledges, de-
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livery, or substitution of the collateral made in
accordance with such agreement.’’.
TITLE IV—DERIVATIVES DEALER
SELF-REGULATION
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Derivatives Dealer
Self-Regulation Act of 1995’’.
SEC. 402. DECLARATION OF PURPOSE.
It is the purpose of this title to authorize the estab-
lishment of a self-regulatory system for the supervision of
derivatives dealers.
SEC. 403. DEFINITIONS.
As used in this title:
(1) BOARD.—The term ‘‘Board’’ means the
Board of Governors of the Federal Reserve System.
(2) DERIVATIVES DEALER.—The term ‘‘deriva-
tives dealer’’ means any financial institution engaged
in the business of brokering or dealing in derivative
financial instruments, as determined by the Board,
except that such term does not include any person
that is registered as a broker or dealer of securities
or as a futures commission merchant.
(3) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ means any institution described
in section 402(9) of the Federal Deposit Insurance
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Corporation Improvement Act of 1991, and any
other institution that the Board determines to be a
financial institution.
(4) DERIVATIVE
FINANCIAL
INSTRUMENT.—
The term ‘‘derivative financial instrument’’ means
any securities contract, commodity contract, forward
contract, swap agreement, or any other similar
agreement or instrument which the Board deter-
mines to be a derivative financial instrument for
purposes of this title.
(5) COMMODITY
CONTRACT; FORWARD
CON-
TRACT; SWAP AGREEMENT.—The terms ‘‘commodity
contract’’, ‘‘forward contract’’, and ‘‘swap agree-
ment’’ have the same meaning as in section
11(e)(8)(D) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(e)(8)(D)).
(6) SECURITIES CONTRACT.—The term ‘‘securi-
ties contract’’ has the same meaning as in section
741(7) of title 11, United States Code and includes
a structured note.
(7) STATUTORY DISQUALIFICATION.—A person
is subject to a ‘‘statutory disqualification’’ with re-
spect to membership or participation in, or associa-
tion with a member of, a national derivatives asso-
ciation, if such person—
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(A) has been and is expelled or suspended
from membership or participation in, or barred
or suspended from being associated with a
member of, any self-regulatory organization
under the Federal securities laws, foreign equiv-
alent of a self-regulatory organization, foreign
or international securities exchange, contract
market designated pursuant to section 5 of the
Commodity Exchange Act (7 U.S.C. 7), or any
substantially equivalent foreign statute or regu-
lation, or futures association registered under
section 17 of such Act (7 U.S.C. 21), or any
substantially equivalent foreign statute or regu-
lation, or has been and is denied trading privi-
leges on any such contract market or foreign
equivalent;
(B) is subject to—
(i) an order to the Board, other ap-
propriate regulatory agency, or foreign fi-
nancial regulatory authority—
(I) denying, suspending for a pe-
riod not exceeding 12 months, or re-
voking his or her registration as a
broker, dealer, municipal securities
dealer, government securities broker,