AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF QUALIFIED FINANCIAL CONTRACTS.

SEC. 904. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF QUALIFIED FINANCIAL CONTRACTS.(a) FDIC-Insured Depository Institutions.—Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)) is amended—(1) by redesignating paragraphs (11) through (15) as paragraphs (12) through (16), respectively;(2) by inserting after paragraph (10) the following new paragraph:“(11) Disaffirmance or repudiation of qualified financial contracts.—In exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which an insured depository institution is a party, the conservator or receiver for such institution shall either—“(A) disaffirm or repudiate all qualified financial contracts between—“(i) any person or any affiliate of such person; and“(ii) the depository institution in default; or“(B) disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph (A) (with respect to such person or any affiliate of such person).”; and(3) by adding at the end the following new paragraph:“(17) Savings clause.—The meanings of terms used in this subsection are applicable for purposes of this subsection only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934), and the Commodity Exchange Act.”.119 STAT. 166(b) Insured Credit Unions.—Section 207(c) of the Federal Credit Union Act (12 U.S.C. 1787(c)) is amended—(1) by redesignating paragraphs (11), (12), and (13) as paragraphs (12), (13), and (14), respectively;(2) by inserting after paragraph (10) the following new paragraph:“(11) Disaffirmance or repudiation of qualified financial contracts.—In exercising the rights of disaffirmance or repudiation of a conservator or liquidating agent with respect to any qualified financial contract to which an insured credit union is a party, the conservator or liquidating agent for such credit union shall either—“(A) disaffirm or repudiate all qualified financial contracts between—“(i) any person or any affiliate of such person; and“(ii) the credit union in default; or“(B) disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph (A) (with respect to such person or any affiliate of such person).”; and(3) by adding at the end the following new paragraph:“(15) Savings clause.—The meanings of terms used in this subsection are applicable for purposes of this subsection only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as that term is defined in section (a)(47) of the Securities Exchange Act of 1934), and the Commodity Exchange Act.”.