To amend the Commodity Exchange Act to clarify the exemptions for captive finance companies from the definition of major swap participant and from the swap clearing requirement.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Manufacturing Certainty and Captive 
Finance Affiliate Clarification Act''.

SEC. 2. CLARIFICATION OF THE EXEMPTIONS FOR CAPTIVE FINANCE COMPANIES 
              FROM THE DEFINITION OF MAJOR SWAP PARTICIPANT AND FROM 
              THE SWAP CLEARING REQUIREMENT.

    (a) Exclusion From Definition of Major Swap Participant.--Section 
1a(33)(D) of the Commodity Exchange Act (7 U.S.C. 1a(33)(D)) is amended 
to read as follows:
                    ``(D) Exclusion of certain captive finance 
                entities.--
                            ``(i) In general.--The definition under 
                        this paragraph shall not include an entity 
                        whose primary business is providing financing 
                        that facilitates the sale or lease of products 
                        by or on behalf of the parent company or 
                        another subsidiary of the parent company, and 
                        uses derivatives only for the purpose of 
                        hedging underlying commercial risks in a 
                        consolidated financing and leasing portfolio, 
                        at least 90 percent of which, as of the end of 
                        its preceding fiscal year, is qualifying 
                        financing (including loans, notes, installment 
                        sales contracts, receivables, and operating and 
                        financing leases).
                            ``(ii) Definitions.--In this subparagraph:
                                    ``(I) Qualifying financing.--The 
                                term `qualifying financing' means--
                                            ``(aa) any financing or 
                                        lease of, or that includes, a 
                                        product; or
                                            ``(bb) any financing to or 
                                        for the benefit of an affiliate 
                                        of the entity, a distribution 
                                        entity, or any customer or 
                                        affiliate of a distribution 
                                        entity,
                                except that the term does not include 
                                any financing that does not facilitate 
                                the sale of a product manufactured by 
                                the entity or its affiliates, as 
                                determined by the Commission.
                                    ``(II) Product.--The term `product' 
                                means--
                                            ``(aa) any good that is 
                                        manufactured or sold by an 
                                        affiliate of the entity; and
                                            ``(bb) any service that is 
                                        provided by an affiliate of the 
                                        entity.
                                    ``(III) Distribution entity.--The 
                                term `distribution entity' means a 
                                person whose primary business is the 
                                sale, lease or servicing of a product 
                                that is manufactured by the entity or 
                                its affiliates.
                                    ``(IV) Affiliate.--The term 
                                `affiliate' means, with respect to an 
                                entity--
                                            ``(aa) a person that 
                                        reports information or prepares 
                                        financial statements on a 
                                        consolidated basis with the 
                                        entity, or for which a parent 
                                        company reports information or 
                                        prepares financial statements 
                                        on a consolidated basis for the 
                                        person and the entity; or
                                            ``(bb) a person of which 
                                        the entity or the parent of the 
                                        entity holds 50 percent or more 
                                        of the equity interests.
                                    ``(V) Person.--The term `person' 
                                means an individual, partnership, 
                                corporation (including a business 
                                trust), limited liability company, 
                                joint stock company, trust, 
                                unincorporated association, joint 
                                venture or other entity, or a 
                                government or any political subdivision 
                                or agency thereof.''.
    (b) Exclusion From Swap Clearing Requirement.--Section 
2(h)(7)(C)(iii) of such Act (7 U.S.C. 2(h)(7)(C)(iii)) is amended to 
read as follows:
                            ``(iii) Exclusion of certain captive 
                        finance entities.--Such term shall not include 
                        an entity excluded from the definition of major 
                        swap participant by reason of section 
                        1a(33)(D).''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall take effect as if they had 
been included in subtitle A of title VII of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act.

Summary: Manufacturing Certainty and Captive Finance Affiliate Clarification Act - Amends the Commodity Exchange Act to redefine an exclusion from "major swap participant" (and as a result from the swap clearing requirement) an entity (captive finance company) whose primary business is providing financing that facilitates the sale or lease of products by or on behalf of the parent company or its subsidiary, and uses derivatives only for the purpose of hedging underlying commercial risks in a consolidated financing and leasing portfolio at least 90% of which, as of the end of its preceding fiscal year, is qualifying financing (including loans, notes, installment sales contracts, receivables, and operating and financing leases).

 Declares amendments made by this Act effective as of the enactment of the Wall Street Transparency and Accountability Act of 2010 (title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act).