§ 4401. — Findings and purpose.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4401]
TITLE 12--BANKS AND BANKING
CHAPTER 45--PAYMENT SYSTEM RISK REDUCTION
SUBCHAPTER I--BILATERAL AND CLEARING ORGANIZATION NETTING
Sec. 4401. Findings and purpose
The Congress finds that--
(1) many financial institutions engage daily in thousands of
transactions with other financial institutions directly and through
clearing organizations;
(2) the efficient processing of such transactions is essential
to a smoothly functioning economy;
(3) such transactions can be processed most efficiently if,
consistent with applicable contractual terms, obligations among
financial institutions are netted;
(4) such netting procedures would reduce the systemic risk
within the banking system and financial markets; and
(5) the effectiveness of such netting procedures can be assured
only if they are recognized as valid and legally binding in the
event of the closing of a financial institution participating in the
netting procedures.
(Pub. L. 102-242, title IV, Sec. 401, Dec. 19, 1991, 105 Stat. 2371.)
Separability
If any provision of Pub. L. 102-242 or any application of any
provision thereof to any person or circumstance is held invalid, the
remainder of Pub. L. 102-242 and the application of any remaining
provision of such Act to any other person or circumstance not to be
affected by such holding, see section 481 of Pub. L. 102-242, set out as
a note under section 1811 of this title.
