§ 4402. Definitions

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1991

   Federal Deposit Insurance Corporation Improvement Act of 1991

   Pub. L. 102–242 title IV § 402 · 105 Stat. 2236

   Enacted · 12 U.S.C. § 4402

   Pub. L. 102–242, title IV, § 402, Dec. 19, 1991, 105 Stat. 2372

   Source evidence

   Code source credit
   Pub. L. 102–242, title IV, § 402, Dec. 19, 1991, 105 Stat. 2372

   Enacted provision · exact public law section
   SEC. 402. DEFINITIONS. For purposes of this subtitle— (1) Broker or dealer.— The term ‘broker or dealer’ means— (A) any company that is registered or licensed under Federal or State law to engage in the business of brokering, underwriting, or dealing in securities in the United States; and (B) to the extent consistent with this title, as determined by the Board of Governors of the Federal Reserve System, any company that is an affiliate of a company described in subparagraph (A) and that is engaged in the business of entering into netting contracts. (2) Clearing organization.— The term “clearing organization” means a clearinghouse, clearing association, clearing corporation, or similar organization— (A) that provides clearing, netting, or settlement services for its members and— (i) in which all members other than the clearing organization itself are financial institutions or other clearing organizations; or (ii) which is registered as a clearing agency under the Securities Exchange Act of 1934; or (B) that performs clearing functions for a contract market designated pursuant to the Commodity Exchange Act. (3) Covered clearing obligation.— The term “covered clearing obligation” means an obligation of a member of a clearing organization to make payment to another member of a clearing organization, subject to a netting contract. (4) Covered contractual payment entitlement.— The term “covered contractual payment entitlement” means— (A) an entitlement of a financial institution to receive a payment, subject to a netting contract from another financial institution; and (B) an entitlement of a member of a clearing organization to receive payment, subject to a netting contract, from another member of a clearing organization of a covered clearing obligation. (5) Covered contractual payment obligation.— The term “covered contractual payment obligation” means— (A) an obligation of a financial institution to make payment, subject to a netting contract to another financial institution; and (B) a covered clearing obligation. (6) Depository institution.— The term “depository institution” means— (A) a depository institution as defined in section 19(b)(1)(A) of the Federal Reserve Act (other than clause (vii)); (B) a branch or agency as defined in section 1(b) of the International Banking Act of 1978; (C) a corporation chartered under section 25(a) of the Federal Reserve Act; or (D) a corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under section 25 of the Federal Reserve Act. (7) Failed financial institution.— The term “failed financial institution” means a financial institution that— (A) fails to satisfy a covered contractual payment obligation when due; (B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings; or (C) has generally ceased to meet its obligations when due. (8) Failed member.— The term “failed member” means any member that— (A) fails to satisfy a covered clearing obligation when due, (B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings, or (C) has generally ceased to meet its obligations when due. (9) Financial institution.— The term “financial institution” means a broker or dealer, a depository institution, a futures commission merchant, or any other institution as determined by the Board of Governors of the Federal Reserve System. (10) Futures commission merchant.— The term “futures commission merchant” means a company that is registered or licensed under Federal law to engage in the business of selling futures and options in commodities. (11) Member.— The term “member” means a member of or participant in a clearing organization, and includes the clearing organization. (12) Net entitlement.— The term “net entitlement” means the amount by which the covered contractual payment entitlements of a financial institution or member exceed the covered contractual payment obligations of the institution or member after netting under a netting contract. (13) Net obligation.— The term “net obligation” means the amount by which the covered contractual payment obligations of a financial institution or member exceed the covered contractual payment entitlements of the institution or member after netting under a netting contract. (14) Netting contract.— (A) In general.— The term “netting contract”— (i) means a contract or agreement between 2 or more financial institutions or members, that— (I) is governed by the laws of the United States, any State, or any political subdivision of any State, and (II) provides for netting present or future payment obligations or payment entitlements (including liquidation or close-out values relating to the obligations or entitlements) among the parties to the agreement; and (ii) includes the rules of a clearing organization. (B) Invalid contracts not included.— The term “netting contract” does not include any contract or agreement that is invalid under or precluded by Federal commodities law.

2. 1992

   Housing and Community Development Act of 1992

   Pub. L. 102–550 title XVI § 1606(a) · 106 Stat. 3672

   Substituted · 12 U.S.C. § 4402(14)(B)

   Pub. L. 102–550 substituted “Federal law” for “Federal commodities law”

   Source evidence

   Code amendment note
   Par. (14)(B). Pub. L. 102–550 substituted “Federal law” for “Federal commodities law”.

   Enacted provision · exact public law section
   (a) Amendments Relating to Subtitle A.— (1) Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) (as amended by section 301(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended— (A) in subsection (a), by striking “A insured” and inserting “An insured”; and (B) in subsection (c), by striking “capitalized,” and inserting “capitalized (but not well capitalized),”. (2) Section 7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) (as amended by section 302(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended— (A) in subparagraph (D), by striking the comma after “members”; and (B) by adding at the end the following new subparagraph: “(H) Bank enterprise act requirement.— The Corporation shall design the risk-based assessment system so that, insofar as the system bases assessments, directly or indirectly, on deposits, the portion of the deposits of any insured depository institution which are attributable to lifeline accounts established in accordance with the Bank Enterprise Act of 1991 shall be subject to assessment at a rate determined in accordance with such Act.”. (3) Effective on the effective date of the amendment made by section 302(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991, section 232(a)(1) of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 1834(a)(1) by striking “7(b)10)” and inserting “7(b)(2)(H)”. (4) The subsection which was added to section 10 of the 12 USC 1820. Federal Deposit Insurance Act by section 302(d) of the Federal Deposit Insurance Corporation Improvement Act of 1991 and designated as subsection (f) is hereby redesignated as sub- section (g). (5) Section 302(e) of the Federal Deposit Insurance Corporation Improvement Act of 1991 is amended— (A) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively; and 12 USC 1817, 1818. 12 USC 1815. (B) by striking paragraph (1) and inserting the following new paragraphs: “(1) in section 5id(3)(B)(i)— “(A) by striking ‘average assessment base’ and inserting ‘deposits’; and “(B) by striking ‘shall—’ and all that follows through the period and inserting ‘shall be treated as deposits which are insured by the Savings Association Insurance Fund.’; “(2) in section 5(d)(3)(B)(ii)— “(A) by striking ‘average assessment base’ and inserting ‘deposits’; and “(B) by striking ‘shall—’ and all that follows through the period and inserting ‘shall be treated as deposits which are insured by the Bank Insurance Fund.’”. (6) Effective on the effective date of the amendment made by section 302(e)(4) of the Federal Deposit Insurance Corporation Improvement Act of 1991 (as so redesignated by paragraph ((B)(A) of this subsection), section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)) (as amended by section 302(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended by adding after paragraph (6) (as transferred and so redesignated by section 1603(a)(3) of this title) the following new paragraph: “(7) Community enterprise credits— The Corporation shall allow a credit against any semiannual assessment to any insured depository institution which satisfies the requirements of the Community Enterprise Assessment Credit Board under section 233(a)(1) of the Bank Enterprise Act of 1991 in the amount determined by such Board by regulation.”. (7) Effective on the effective date of the amendment made by section 302(e)(4) of the Federal Deposit Insurance Corporation Improvement Act of 1991 (as so redesignated by paragraph (5))(A) of this subsection), section 233 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 1834a) is amended— (A) in subsection (a)(1)(A), by striking “7(d)(4)” and inserting “7(b)(7)”; (B) in subsection (a)(3), by striking “7(d)(4)” and inserting “7(b)(7)”; and (C) in subsection (e)(2), by striking “made for purposes of the notification required under section 7(d)(1)(B)r and inserting “of the semiannual assessment to which such credit is applicable”. (8) Section 24(e)(1)(B) of the Federal Deposit Insurance Act (12 U.S.C. 1831a) (as added by section 303(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended to read as follows: “(B) meets applicable consumer disclosure requirements with respect to such insurance.”. (9) The subsection of section 18 of the Federal Deposit Insurance Act which was added by section 305(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991 and designated as subsection (o) (relating to periodic review of 12 USC 1828. cap-ital standards) is hereby redesignated as subsection (p). (10) Section 22(h)(6)(B)(i) of the Federal Reserve Act (12 U.S.C, 375b) (as amended by section 306(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended by striking “and” after the semicolon and inserting “or”. (11) Section 8(t) of the Federal Deposit Insurance Act (12 U.S.C. 1818(t)) (as added by section 307 of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended— (A) in paragraph (2)(B), by inserting “or institution- affiliated party” after “institution” each place such term appears; (B) in paragraph (2)(C), by striking “institution’s” the 1st place such term appears; and (C) in paragraph (5), by inserting “or institution-affiliated party” after “depository institution”.

3. 2000

   Consolidated Appropriations Act, 2001

   Pub. L. 106–554 § 1(a)(5)(tI)(s112)(a)(2) · 114 Stat. 2763

   Substituted · 12 U.S.C. § 4402

   Pub. L. 106–554, § 1(a)(5) [title I, § 112(a)(2)], substituted “this subchapter” for “this chapter” in introductory provisions

   Source evidence

   Code amendment note
   Pub. L. 106–554, § 1(a)(5) [title I, § 112(a)(2)], substituted “this subchapter” for “this chapter” in introductory provisions.

   Enacted provision · exact public law section
   (5) H.R. 5660, as introduced on December 14, 2000.

4. 2000

   Consolidated Appropriations Act, 2001

   Pub. L. 106–554 § 1(a)(5)(tI)(s123)(b) · 114 Stat. 2763

   1. Added · 12 U.S.C. § 4402(2)(B)

      Pub. L. 106–554, § 1(a)(5) [title I, § 123(b)], added subpar. (B)

   2. Struck · 12 U.S.C. § 4402(2)(B)

      Pub. L. 106–554, § 1(a)(5) [title I, § 123(b)], struck out former subpar. (B) which read as follows: “that performs clearing functions for a contract market designated pursuant to the Commodity Exchange Act.”

   Source evidence

   Code amendment note
   Par. (2)(B). Pub. L. 106–554, § 1(a)(5) [title I, § 123(b)], added subpar. (B) and struck out former subpar. (B) which read as follows: “that performs clearing functions for a contract market designated pursuant to the Commodity Exchange Act.”

   Enacted provision · exact public law section
   (5) H.R. 5660, as introduced on December 14, 2000.

5. 2005

   Pub. L. 109–8 § 906(a)(1)(A) · 119 Stat. 23

   Inserted · 12 U.S.C. § 4402(2)(A)(ii)

   Pub. L. 109–8, § 906(a)(1)(A), inserted before semicolon “, or is exempt from such registration by order of the Securities and Exchange Commission”

   Source evidence

   Code amendment note
   Par. (2)(A)(ii). Pub. L. 109–8, § 906(a)(1)(A), inserted before semicolon “, or is exempt from such registration by order of the Securities and Exchange Commission”.

   Enacted provision · exact public law section
   (A) in subparagraph (A)(ii), by inserting before the semicolon “, or is exempt from such registration by order of the Securities and Exchange Commission”; and

   Effective date note
   Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

6. 2005

   Pub. L. 109–8 § 906(a)(1)(B) · 119 Stat. 23

   Inserted · 12 U.S.C. § 4402(2)(B)

   Pub. L. 109–8, § 906(a)(1)(B), inserted before period at end “, that has been granted an exemption under section 6(c)(1) of title 7, or that is a multilateral clearing organization (as defined in section 4421 of this title)”

   Source evidence

   Code amendment note
   Par. (2)(B). Pub. L. 109–8, § 906(a)(1)(B), inserted before period at end “, that has been granted an exemption under section 6(c)(1) of title 7, or that is a multilateral clearing organization (as defined in section 4421 of this title)”.

   Enacted provision · exact public law section
   (B) in subparagraph (B), by inserting before the period “, that has been granted an exemption under section 4(c)(1) of the Commodity Exchange Act, or that is a multilateral clearing organization (as defined in section 408 of this Act)”;

   Effective date note
   Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

7. 2005

   Pub. L. 109–8 § 906(a)(2)(B) · 119 Stat. 23

   Redesignated · 12 U.S.C. § 4402(6)(B)

   Pub. L. 109–8, § 906(a)(2)(B), added subpar. (B). Former subpar. (B) redesignated (C)

   Source evidence

   Code amendment note
   Par. (6)(B). Pub. L. 109–8, § 906(a)(2)(B), added subpar. (B). Former subpar. (B) redesignated (C).

   Enacted provision · exact public law section
   (B) by inserting after subparagraph (A) the following new subparagraph: “(B) an uninsured national bank or an uninsured State bank that is a member of the Federal Reserve System, if the national bank or State member bank is not eligible to make application to become an insured bank under section 5 of the Federal Deposit Insurance Act;” ; and

   Effective date note
   Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

8. 2005

   Pub. L. 109–8 § 906(a)(2)(A) · 119 Stat. 23

   1. Redesignated · 12 U.S.C. § 4402(6)(C)

      Pub. L. 109–8, § 906(a)(2)(A), (C), redesignated subpar. (B) as (C)

   2. Redesignated · 12 U.S.C. § 4402(6)(C)

      Pub. L. 109–8, § 906(a)(2)(A), (C), amended it generally. Prior to amendment, subpar. (C) read as follows: “a branch or agency as defined in section 1(b) of the International Banking Act of 1978;”. Former subpar. (C) redesignated (D)

   Source evidence

   Code amendment note
   Par. (6)(C). Pub. L. 109–8, § 906(a)(2)(A), (C), redesignated subpar. (B) as (C) and amended it generally. Prior to amendment, subpar. (C) read as follows: “a branch or agency as defined in section 1(b) of the International Banking Act of 1978;”. Former subpar. (C) redesignated (D).

   Enacted provision · exact public law section
   (A) by redesignating subparagraphs (B) through (D) as subparagraphs (C) through (E), respectively;

   Effective date note
   Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

9. 2005

   Pub. L. 109–8 § 906(a)(2)(A) · 119 Stat. 23

   Redesignated · 12 U.S.C. § 4402(6)(D); 12 U.S.C. § 4402(6)(E)

   Pub. L. 109–8, § 906(a)(2)(A), redesignated subpars. (C) and (D) as (D) and (E), respectively

   Source evidence

   Code amendment note
   Par. (6)(D), (E). Pub. L. 109–8, § 906(a)(2)(A), redesignated subpars. (C) and (D) as (D) and (E), respectively.

   Enacted provision · exact public law section
   (A) by redesignating subparagraphs (B) through (D) as subparagraphs (C) through (E), respectively;

   Effective date note
   Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

10. 2005

    Pub. L. 109–8 § 906(a)(3) · 119 Stat. 23

    Inserted · 12 U.S.C. § 4402(11)

    Pub. L. 109–8, § 906(a)(3), inserted before period at end “and any other clearing organization with which such clearing organization has a netting contract”

    Source evidence

    Code amendment note
    Par. (11). Pub. L. 109–8, § 906(a)(3), inserted before period at end “and any other clearing organization with which such clearing organization has a netting contract”.

    Enacted provision · exact public law section
    (3) in paragraph (11), by inserting before the period “and any other clearing organization with which such clearing organization has a netting contract”;

    Effective date note
    Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

11. 2005

    Pub. L. 109–8 § 906(a)(4) · 119 Stat. 23

    Amended · 12 U.S.C. § 4402(14)(A)(i)

    Pub. L. 109–8, § 906(a)(4), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “means a contract or agreement between 2 or more financial institutions or members, that—

    Source evidence

    Code amendment note
    Par. (14)(A)(i). Pub. L. 109–8, § 906(a)(4), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “means a contract or agreement between 2 or more financial institutions or members, that—

    “(I) is governed by the laws of the United States, any State, or any political subdivision of any State, and “(II) provides for netting present or future payment obligations or payment entitlements (including liquidation or close-out values relating to the obligations or entitlements) among the parties to the agreement; and”.

    Enacted provision · exact public law section
    (4) by amending paragraph (14)(A)(i) to read as follows: “(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” ; and

    Effective date note
    Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

12. 2005

    Pub. L. 109–8 § 906(a)(5) · 119 Stat. 23

    Added · 12 U.S.C. § 4402(15)

    Pub. L. 109–8, § 906(a)(5), added par. (15)

    Source evidence

    Code amendment note
    Par. (15). Pub. L. 109–8, § 906(a)(5), added par. (15).

    Enacted provision · exact public law section
    (5) by adding at the end the following new paragraph: “(15) Payment.— The term ‘payment’ means a payment of United States dollars, another currency, or a composite currency, and a noncash delivery, including a payment or delivery to liquidate an unmatured obligation.” .

    Effective date note
    Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

14 of 14 references resolved to an enrolled provision