CLEARING ORGANIZATION NETTING.

SEC. 404. CLEARING ORGANIZATION NETTING. (a) General Netting Rule.— Notwithstanding any other provision of law, the covered contractual payment obligations and covered contractual payment entitlements of a member of a clearing organization to and from all other members of a clearing organization shall be netted in accordance with and subject to the conditions of any applicable netting contract. (b) Limitation of Obligation To Make Payment.— The only obligation, if any, of a member of a clearing organization to make payment with respect to covered contractual payment obligations arising under a single netting contract to any other member of a clearing organization shall be equal to its net obligation arising under that netting contract, and no such obligation shall exist if there is no net obligation. (c) Limitation on Right To Receive Payment.— The only right, if any, of a member of a clearing organization to receive payment with respect to a covered contractual payment entitlement arising under a single netting contract from other members of a clearing organization shall be equal to its net entitlement arising under that netting contract, and no such right shall exist if there is no net entitlement. (d) Entitlement of Failed Members.— The net entitlement, if any, of any failed member of a clearing organization shall be paid to the failed member in accordance with, and subject to the conditions of, the applicable netting contract. (e) Obligations of Failed Members.— The net obligation, if any, of any failed member of a clearing organization shall be determined 105 STAT. 2375in accordance with, and subject to the conditions of, the applicable netting contract. (f) Limitation on Claims for Entitlement.— A failed member of a clearing organization shall have no recognizable claim against any member of a clearing organization for any amount based on such covered contractual payment entitlements other than its net entitlement. (g) Effectiveness Notwithstanding Status as Member.— This section shall be given effect notwithstanding that a member is a failed member.