§4404 Clearing organization netting

Summary

All covered contractual payment obligations (payments a member owes) and covered contractual payment entitlements (payments a member is due) between members of a clearing organization must be ended, settled, sped up, and combined (netted) under the netting contract that applies. That rule stands over other state or federal laws except section 1821(e) of this title, section 1787(c) of this title, any order under section 78eee(b)(2) of title 15, and except as provided in section 561(b)(2) of title 11. For each single netting contract, a member only has to pay its net amount and only has the right to receive its net amount; if there is no net amount, there is no payment or right. If a member has failed, its net due is paid and its net owed is set by the netting contract, and the failed member cannot claim more than its net due. Security or credit arrangements tied to such netting contracts between two members can be enforced as written and cannot be stayed, avoided, or limited except as noted above.