11 U.S.C. § 561 : US Code - Section 561: Contractual right to terminate, liquidate, accelerate, or offset under a master netting agreement and across contracts; proceedings under chapter 15

Search 11 U.S.C. § 561 : US Code - Section 561: Contractual right to terminate, liquidate, accelerate, or offset under a master netting agreement and across contracts; proceedings under chapter 15

(a) Subject to subsection (b), the exercise of any contractual
right, because of a condition of the kind specified in section
365(e)(1), to cause the termination, liquidation, or acceleration
of or to offset or net termination values, payment amounts, or
other transfer obligations arising under or in connection with one
or more (or the termination, liquidation, or acceleration of one or
more) -
(1) securities contracts, as defined in section 741(7);
(2) commodity contracts, as defined in section 761(4);
(3) forward contracts;
(4) repurchase agreements;
(5) swap agreements; or
(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of
any provision of this title or by any order of a court or
administrative agency in any proceeding under this title.
(b)(1) A party may exercise a contractual right described in
subsection (a) to terminate, liquidate, or accelerate only to the
extent that such party could exercise such a right under section
555, 556, 559, or 560 for each individual contract covered by the
master netting agreement in issue.
(2) If a debtor is a commodity broker subject to subchapter IV of
chapter 7 -
(A) a party may not net or offset an obligation to the debtor
arising under, or in connection with, a commodity contract traded
on or subject to the rules of a contract market designated under
the Commodity Exchange Act or a derivatives transaction execution
facility registered under the Commodity Exchange Act against any
claim arising under, or in connection with, other instruments,
contracts, or agreements listed in subsection (a) except to the
extent that the party has positive net equity in the commodity
accounts at the debtor, as calculated under such subchapter; and
(B) another commodity broker may not net or offset an
obligation to the debtor arising under, or in connection with, a
commodity contract entered into or held on behalf of a customer
of the debtor and traded on or subject to the rules of a contract
market designated under the Commodity Exchange Act or a
derivatives transaction execution facility registered under the
Commodity Exchange Act against any claim arising under, or in
connection with, other instruments, contracts, or agreements
listed in subsection (a).
(3) No provision of subparagraph (A) or (B) of paragraph (2)
shall prohibit the offset of claims and obligations that arise
under -
(A) a cross-margining agreement or similar arrangement that has
been approved by the Commodity Futures Trading Commission or
submitted to the Commodity Futures Trading Commission under
paragraph (1) or (2) of section 5c(c) of the Commodity Exchange
Act and has not been abrogated or rendered ineffective by the
Commodity Futures Trading Commission; or
(B) any other netting agreement between a clearing organization
(as defined in section 761) and another entity that has been
approved by the Commodity Futures Trading Commission.
(c) As used in this section, the term "contractual right"
includes a right set forth in a rule or bylaw of a derivatives
clearing organization (as defined in the Commodity Exchange Act), a
multilateral clearing organization (as defined in the Federal
Deposit Insurance Corporation Improvement Act of 1991), a national
securities exchange, a national securities association, a
securities clearing agency, a contract market designated under the
Commodity Exchange Act, a derivatives transaction execution
facility registered under the Commodity Exchange Act, or a board of
trade (as defined in the Commodity Exchange Act) or in a resolution
of the governing board thereof, and a right, whether or not
evidenced in writing, arising under common law, under law merchant,
or by reason of normal business practice.
(d) Any provisions of this title relating to securities
contracts, commodity contracts, forward contracts, repurchase
agreements, swap agreements, or master netting agreements shall
apply in a case under chapter 15, so that enforcement of
contractual provisions of such contracts and agreements in
accordance with their terms will not be stayed or otherwise limited
by operation of any provision of this title or by order of a court
in any case under this title, and to limit avoidance powers to the
same extent as in a proceeding under chapter 7 or 11 of this title
(such enforcement not to be limited based on the presence or
absence of assets of the debtor in the United States).