§ 4421. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4421]
TITLE 12--BANKS AND BANKING
CHAPTER 45--PAYMENT SYSTEM RISK REDUCTION
SUBCHAPTER II--MULTILATERAL CLEARING ORGANIZATIONS
Sec. 4421. Definitions
For purposes of this subchapter, the following definitions shall
apply:
(1) Multilateral clearing organization
The term ``multilateral clearing organization'' means a system
utilized by more than two participants in which the bilateral credit
exposures of participants arising from the transactions cleared are
effectively eliminated and replaced by a system of guarantees,
insurance, or mutualized risk of loss.
(2) Over-the-counter derivative instrument
The term ``over-the-counter derivative instrument'' includes--
(A) any agreement, contract, or transaction, including the
terms and conditions incorporated by reference in any such
agreement, contract, or transaction, which is an interest rate
swap, option, or forward agreement, including a rate floor, rate
cap, rate collar, cross-currency rate swap, basis swap, and
forward rate agreement; a same day-tomorrow, tomorrow-next,
forward, or other foreign exchange or precious metals agreement;
a currency swap, option, or forward agreement; an equity index
or equity swap, option, or forward agreement; a debt index or
debt swap, option, or forward agreement; a credit spread or
credit swap, option, or forward agreement; a commodity index or
commodity swap, option, or forward agreement; and a weather
swap, weather derivative, or weather option;
(B) any agreement, contract or transaction similar to any
other agreement, contract, or transaction referred to in this
clause \1\ that is presently, or in the future becomes,
regularly entered into by parties that participate in swap
transactions (including terms and conditions incorporated by
reference in the agreement) and that is a forward, swap, or
option on one or more occurrences of any event, rates,
currencies, commodities, equity securities or other equity
instruments, debt securities or other debt instruments, economic
or other indices or measures of economic or other risk or value;
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\1\ So in original. Probably should be ``this paragraph''.
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(C) any agreement, contract, or transaction excluded from
the Commodity Exchange Act [7 U.S.C. 1 et seq.] under section
2(c), 2(d), 2(f), or 2(g) of such Act [7 U.S.C. 2(c), (d), (f),
(g)], or exempted under section 2(h) or 4(c) of such Act [7
U.S.C. 2(h), 6(c)]; and
(D) any option to enter into any, or any combination of,
agreements, contracts or transactions referred to in this
subparagraph.\1\
(3) Other definitions
The terms ``insured State nonmember bank'', ``State member
bank'', and ``affiliate'' have the same meanings as in section 1813
of this title.
(Pub. L. 102-242, title IV, Sec. 408, as added Pub. L. 106-554,
Sec. 1(a)(5) [title I, Sec. 112(a)(3)], Dec. 21, 2000, 114 Stat. 2763,
2763A-391.)
References in Text
The Commodity Exchange Act, referred to in par. (2)(C), is act Sept.
21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified
generally to chapter 1 (Sec. 1 et seq.) of Title 7, Agriculture. For
complete classification of this Act to the Code, see section 1 of Title
7 and Tables.
