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Title 7 — Agriculture

Chapter 1 — Commodity Exchanges

§ 27f. Contract enforcement

Statutory text

(a)

Hybrid instruments

No hybrid instrument shall be void, voidable, or unenforceable, and no party to a hybrid instrument shall be entitled to rescind, or recover any payment made with respect to, a hybrid instrument under any provision of Federal or State law, based solely on the failure of the hybrid instrument to satisfy the predominance test set forth in section 27c(b) of this title or to comply with the terms or conditions of an exemption or exclusion from any provision of the Commodity Exchange Act [7 U.S.C. 1 et seq.] or any regulation of the Commodity Futures Trading Commission.

(b)

Preemption

Sections 27 to 27f of this title shall supersede and preempt the application of any State or local law that prohibits or regulates gaming or the operation of bucket shops (other than antifraud provisions of general applicability) in the case of a hybrid instrument that is predominantly a banking product.

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. Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(5)(tIV)(s408) · 114 Stat. 2763

    Enacted · 7 U.S.C. § 27f

    Pub. L. 106–554, § 1(a)(5) [title IV, § 408], Dec. 21, 2000, 114 Stat. 2763, 2763A–461

    Source evidence

    Code source credit
    Pub. L. 106–554, § 1(a)(5) [title IV, § 408], Dec. 21, 2000, 114 Stat. 2763, 2763A–461

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

  2. Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 725(g)(1)(C)(ii) · 124 Stat. 1376

    1. Redesignated · 7 U.S.C. § 27f(b)

      Pub. L. 111–203, § 725(g)(1)(C)(ii), (iii), redesignated subsec. (c) as (b)

    2. Struck · 7 U.S.C. § 27f(b)

      Pub. L. 111–203, § 725(g)(1)(C)(ii), (iii), struck out former subsec. (b). Text of subsec. (b) read as follows: “No covered swap agreement shall be void, voidable, or unenforceable, and no party to a covered swap agreement shall be entitled to rescind, or recover any payment made with respect to, a covered swap agreement under any provision of Federal or State law, based solely on the failure of the covered swap agreement to comply with the terms or conditions of an exemption or exclusion from any provision of the Commodity Exchange Act or any regulation of the Commodity Futures Trading Commission.”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 111–203, § 725(g)(1)(C)(ii), (iii), redesignated subsec. (c) as (b) and struck out former subsec. (b). Text of subsec. (b) read as follows: “No covered swap agreement shall be void, voidable, or unenforceable, and no party to a covered swap agreement shall be entitled to rescind, or recover any payment made with respect to, a covered swap agreement under any provision of Federal or State law, based solely on the failure of the covered swap agreement to comply with the terms or conditions of an exemption or exclusion from any provision of the Commodity Exchange Act or any regulation of the Commodity Futures Trading Commission.”

    Enacted provision · exact public law section
    (ii) by striking subsection (b); and

    Effective date note
    Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

  3. Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 725(g)(1)(C)(iii) · 124 Stat. 1376

    Redesignated · 7 U.S.C. § 27f(c)

    Pub. L. 111–203, § 725(g)(1)(C)(iii), redesignated subsec. (c) as (b)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 111–203, § 725(g)(1)(C)(iii), redesignated subsec. (c) as (b).

    Enacted provision · exact public law section
    (iii) by redesignating subsection (c) as subsection (b).

    Effective date note
    Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

  4. Wall Street Transparency and Accountability Act of 2010

    Pub. L. 111–203 § 725(g)(1)(C)(i) · 124 Stat. 1376

    1. Substituted · 7 U.S.C. § 27f(c)

      Pub. L. 111–203, § 725(g)(1)(C)(i), substituted “in the case of” for “in the case of—”

    2. Struck · 7 U.S.C. § 27f(c)

      Pub. L. 111–203, § 725(g)(1)(C)(i), struck out par. (1) designation before “a hybrid”

    3. Substituted · 7 U.S.C. § 27f(c)

      Pub. L. 111–203, § 725(g)(1)(C)(i), substituted “product.” for “product; or”

    4. Struck · 7 U.S.C. § 27f(c)

      Pub. L. 111–203, § 725(g)(1)(C)(i), struck out par. (2) which read as follows: “a covered swap agreement.”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 111–203, § 725(g)(1)(C)(i), substituted “in the case of” for “in the case of—”, struck out par. (1) designation before “a hybrid”, substituted “product.” for “product; or”, and struck out par. (2) which read as follows: “a covered swap agreement.”

    Enacted provision · exact public law section
    (i) in subsection (c)— (I) by striking “in the case” and all that follows through “a hybrid” and inserting “in the case of a hybrid”; (II) by striking “; or” and inserting a period; and (III) by striking paragraph (2);

    Effective date note
    Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

8 of 8 references resolved to an enrolled provision

Editorial Notes

References in Text

The Commodity Exchange Act, referred to in subsec. (a), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to this chapter. For complete classification of this Act to the Code, see section 1 of this title and Tables.

Codification

Section was enacted as part of the Legal Certainty for Bank Products Act of 2000, and also as part of the Commodity Futures Modernization Act of 2000, and not as part of the Commodity Exchange Act which comprises this chapter.

Amendments

2010—Subsec. (b). Pub. L. 111–203, § 725(g)(1)(C)(ii), (iii), redesignated subsec. (c) as (b) and struck out former subsec. (b). Text of subsec. (b) read as follows: “No covered swap agreement shall be void, voidable, or unenforceable, and no party to a covered swap agreement shall be entitled to rescind, or recover any payment made with respect to, a covered swap agreement under any provision of Federal or State law, based solely on the failure of the covered swap agreement to comply with the terms or conditions of an exemption or exclusion from any provision of the Commodity Exchange Act or any regulation of the Commodity Futures Trading Commission.”

Subsec. (c). Pub. L. 111–203, § 725(g)(1)(C)(iii), redesignated subsec. (c) as (b).

Pub. L. 111–203, § 725(g)(1)(C)(i), substituted “in the case of” for “in the case of—”, struck out par. (1) designation before “a hybrid”, substituted “product.” for “product; or”, and struck out par. (2) which read as follows: “a covered swap agreement.”

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the later of 360 days after , or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

Credits

2000–2010 · 2 acts
  1. 2000Pub. L. 106–554, § 1(a)(5) [title IV, § 408], , 114 Stat. 2763, 2763A–461
  2. 2010Pub. L. 111–203, title VII, § 725(g)(1)(C), , 124 Stat. 1694.
Show as published

(Pub. L. 106–554, § 1(a)(5) [title IV, § 408], , 114 Stat. 2763, 2763A–461; Pub. L. 111–203, title VII, § 725(g)(1)(C), , 124 Stat. 1694.)

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