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H.R. 5585: Financial Netting Improvements Act of 2006

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H.R. 5585: Financial Netting Improvements Act of 2006

109th Congress · introduced 2006-06-12 · Finance and Financial Sector · Latest: Became Public Law No: 109-390.

federal

Follow this bill, step by step

  1. Where it came from: introduced 2006-06-12 · official record
  2. Who proposed it: Rep. McHenry, Patrick T. [R-NC-10] · what a sponsor is
  3. What happened next: 1 recorded vote in our records. Latest: House roll call 522 (2006): Suspend the Rules and Agree to Senate Amendments, HR5585 (2006-11-15), Passed. See all
  4. Where it stands now: Became Public Law No: 109-390. (final step reached)
  5. If it becomes law and spends money: follow the money to money laws, then agencies and contracts and grants.

What does this mean?

Official title

Financial Netting Improvements Act of 2006

Plain summary

(This measure has not been amended since it was passed by the Senate on September 30, 2006. The summary of that version is repeated here.) Financial Netting Improvements Act of 2006 - (Sec. 2) Amends the Federal Deposit Insurance Act (FDIA) and the Federal Credit Union Act to revise treatment of certain agreements entered into before appointment of depository institution conservators or receivers, including securities contracts, forward contracts, and swap agreements. (Sec. 3) Defines "person" to include any governmental entity. (Sec. 4) Amends the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) to revise certain requirements pertinent to bilateral netting to declare that the covered contractual payment obligations and the covered contractual payment entitlements between any two financial institutions shall be terminated, liquidated, accelerated, and netted in accordance with, and subject to the conditions of, the terms of any applicable netting contract. Declares, with respect to clearing organization netting, that the covered contractual payment obligations and the covered contractual payment entitlements of a member of a clearing organization to and from all other organization members shall be terminated, liquidated, accelerated, and netted in accordance with and subject to the conditions of any applicable netting contract. (Sec. 5) Makes conforming amendments to the FDICIA, federal bankruptcy law, and the Securities Investor Protection Act of 1970. Amends the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 to state that the meanings of terms used in the Act are applicable for its purposes 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, and the Commodity Exchange Act. (Sec. 6) Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to repeal the non-enforceability of a walkaway clause (thus making it enforceable) in a qualified financial contract of an insured depository institution in default. States that any payment or delivery obligation otherwise due from a party pursuant to a qualified financial contract is suspended from the time a receiver is appointed until the earlier of: (1) the time a party receives notice that the contract has been transferred; or (2) 5 p.m. (eastern time) on the business day after the receiver's appointment.

Congressional Research Service summary (Public Law), quoted unchanged (nonpartisan). Read the source.

What a vote does

A “Yea” vote

If it passes both chambers and is signed, it becomes law.

A “Nay” vote

If it is not passed, current law stays as it is.

PSI Sci description of the legislative step (not an opinion).

What does this mean? (plain words)

Official text

Financial Netting Improvements Act of 2006

Source: Congressional Research Service summary (Public Law)

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The strongest published arguments

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How did my representative vote? · This bill's floor votes

Officials and money

Sponsor: Rep. McHenry, Patrick T. [R-NC-10] · 1 cosponsors

Cost estimate: CBO cost estimate: H.R. 5585, Financial Netting Improvements Act of 2006 (2006-07-12); CBO cost estimate: H.R. 5585, Financial Netting Improvements Act of 2006 (2006-07-12)

Cosponsors on this site

Debbie Wasserman Schultz (D-FL)

Recorded votes

Words on this page, explained (4)
Obligation
A binding promise by a government agency to pay money, for example by signing a contract or awarding a grant. Spending data such as USAspending.gov counts money when it is obligated, which can be before it is actually paid out.
Rulemaking
The process agencies use to write regulations that carry out laws passed by Congress or a legislature. Usually an agency publishes a proposed rule, takes public comments, then publishes a final rule.
Securities
Financial investments that can be bought and sold, such as stocks and bonds.
Statute
A written law passed by a legislature. A statute can be changed by a later law; changing a constitution needs an amendment.

Plain meanings written from linked sources. All words.

Sources

Record fed-us-cong109-hr5585 · catalog fed-us-congress-bills-cong109 · updated 2026-11-15 by psicol fed-bills-cong109