{"identifier":"/us/usc/t12/s4401","title":12,"num":"\u00a7\u202f4401.","heading":"Findings and purpose","text":"\u00a7\u202f4401.\nFindings and purpose\nThe Congress finds that\u2014\n(1) many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations;\n(2) the efficient processing of such transactions is essential to a smoothly functioning economy;\n(3) such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;\n(4) such netting procedures would reduce the systemic risk within the banking system and financial markets; and\n(5) the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.","url":"https://projectusc.org/usc/t12/s4401.html","content":[{"t":"sec","id":"/us/usc/t12/s4401","children":[{"t":"num","text":"\u00a7\u202f4401."},{"t":"heading","text":"Findings and purpose","tail":"\n"},{"t":"chapeau","text":"The Congress finds that\u2014"},{"t":"para","id":"/us/usc/t12/s4401/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4401/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the efficient processing of such transactions is essential to a smoothly functioning economy;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4401/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4401/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" such netting procedures would reduce the systemic risk within the banking system and financial markets; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4401/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.","tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}