§4404 Clearing Organization Netting

Summary

End, settle, speed up, and combine into one net amount all covered payment obligations and payment rights between members of a clearing organization under their netting contract. This happens even if other state or federal laws say otherwise, except for section 1821(e), section 1787(c), any order under section 78eee(b)(2) of title 15, and as provided in section 561(b)(2) of title 11. A member only has to pay the single net amount it owes under that netting contract, and only has the right to receive the single net amount it is owed. If a member fails, its net amount owed or due is worked out and paid under the netting contract. A failed member cannot claim more than its net amount. Any security or credit support tied to those netting contracts can be enforced as written, except as noted above and as provided in section 561(b)(2) of title 11.