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netting contract

Defined in 1 dictionary — U.S. Code

United States Code

12 U.S.C. § 4402 — for purposes of this subchapter (2 versions over time)

The term “netting contract”—

(i) means a contract or agreement between 2 or more financial institutions, clearing organizations, or members that provides for netting present or future payment obligations or payment entitlements (including liquidation or close out values relating to such obligations or entitlements) among the parties to the agreement; and

(ii) includes the rules of a clearing organization.