PUBLIC LAW 109–390—DEC. 12, 2006
120 STAT. 2697
or arrangement or other credit enhancement forming a part of or related to any swap agreement, or of any contractual right (as defined in section 560) to offset or net out any termination value, payment amount, or other transfer obligation arising under or in connection with 1 or more such agreements, including any master agreement for such agreements;’’; and (C) by striking paragraph (27) and inserting the following: ‘‘(27) under subsection (a) of this section, of the exercise by a master netting agreement participant of any contractual right (as defined in section 555, 556, 559, or 560) under any security agreement or arrangement or other credit enhancement forming a part of or related to any master netting agreement, or of any contractual right (as defined in section 555, 556, 559, or 560) to offset or net out any termination value, payment amount, or other transfer obligation arising under or in connection with 1 or more such master netting agreements to the extent that such participant is eligible to exercise such rights under paragraph (6), (7), or (17) for each individual contract covered by the master netting agreement in issue; and’’; and (3) in section 741(7)(A)— (A) in clause (i)— (i) by striking ‘‘mortgage loan or’’ and inserting ‘‘mortgage loan,’’; and (ii) by inserting before the semicolon ‘‘(whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in section 101)’’; (B) in clause (iii)— (i) by inserting ‘‘(including by novation)’’ after ‘‘the guarantee’’; and (ii) by inserting before the semicolon ‘‘(whether or not such settlement is in connection with any agreement or transaction referred to in clauses (i) through (xi))’’; (C) in clause (viii), by striking ‘‘or (vii)’’ each place it appears and inserting ‘‘(vii), (viii), or (ix)’’; (D) by redesignating clauses (v) through (ix) as clauses (vii) through (xi), respectively; and (E) by inserting after clause (iv) the following: ‘‘(v) any extension of credit for the clearance or settlement of securities transactions; ‘‘(vi) any loan transaction coupled with a securities collar transaction, any prepaid forward securities transaction, or any total return swap transaction coupled with a securities sale transaction;’’. (b) LIMITATION OF AVOIDANCE POWERS UNDER MASTER NETTING AGREEMENT.—Section 546 of title 11, United States Code, is amended— (1) in subsection (e)— (A) by inserting ‘‘(or for the benefit of)’’ before ‘‘a commodity broker’’; and (B) by inserting ‘‘or that is a transfer made by or to (or for the benefit of) a commodity broker, forward contract merchant, stockbroker, financial institution, financial participant, or securities clearing agency, in connection
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