§ 27. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC27]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 27. Definitions
(a) Bank
In sections 27 to 27f of this title, the term ``bank'' means--
(1) any depository institution (as defined in section 1813(c) of
title 12);
(2) any foreign bank or branch or agency of a foreign bank (each
as defined in section 3101 of title 12);
(3) any Federal or State credit union (as defined in section
1752 of title 12);
(4) any corporation organized under section 25A of the Federal
Reserve Act [12 U.S.C. 611 et seq.];
(5) any corporation operating under section 25 of the Federal
Reserve Act [12 U.S.C. 601 et seq.];
(6) any trust company; or
(7) any subsidiary of any entity described in paragraph \1\ (1)
through (6) of this subsection, if the subsidiary is regulated as if
the subsidiary were part of the entity and is not a broker or dealer
(as such terms are defined in section 78c of title 15) or a futures
commission merchant (as defined in section 1a(20) of this title).
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\1\ So in original. Probably should be ``paragraphs''.
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(b) Identified banking product
In sections 27 to 27f of this title, the term ``identified banking
product'' shall have the same meaning as in paragraphs (1) through (5)
of section 206(a) of the Gramm-Leach-Bliley Act, except that in applying
such section for purposes of sections 27 to 27f of this title--
(1) the term ``bank'' shall have the meaning given in subsection
(a) of this section; and
(2) the term ``qualified investor'' means eligible contract
participant (as defined in section 1a(12) of this title, as in
effect on December 21, 2000).
(c) Hybrid instrument
In sections 27 to 27f of this title, the term ``hybrid instrument''
means an identified banking product not excluded by section 27a of this
title, offered by a bank, having one or more payments indexed to the
value, level, or rate of, or providing for the delivery of, one or more
commodities (as defined in section 1a(4) of this title).
(d) Covered swap agreement
In sections 27 to 27f of this title, the term ``covered swap
agreement'' means a swap agreement (as defined in section 206(b) of the
Gramm-Leach-Bliley Act), including a credit or equity swap, based on a
commodity other than an agricultural commodity enumerated in section
1a(4) of this title if--
(1) the swap agreement--
(A) is entered into only between persons that are eligible
contract participants (as defined in section 1a(12) of this
title, as in effect on December 21, 2000) at the time the
persons enter into the swap agreement; and
(B) is not entered into or executed on a trading facility
(as defined in section 1a(33) of this title); or
(2) the swap agreement--
(A) is entered into or executed on an electronic trading
facility (as defined in section 1a(10) of this title);
(B) is entered into on a principal-to-principal basis
between parties trading for their own accounts or as described
in section 1a(12)(B)(ii) of this title;
(C) is entered into only between persons that are eligible
contract participants as described in subparagraph (A), (B)(ii),
or (C) of section 1a(12) of this title, as in effect on December
21, 2000, at the time the persons enter into the swap agreement;
and
(D) is an agreement, contract or transaction in an excluded
commodity (as defined in section 1a(13) of this title).
(Pub. L. 106-554, Sec. 1(a)(5) [title IV, Sec. 402], Dec. 21, 2000, 114
Stat. 2763, 2763A-457.)
References in Text
Section 25A of the Federal Reserve Act, referred to in subsec.
(a)(4), is classified to subchapter II (Sec. 611 et seq.) of chapter 6
of Title 12, Banks and Banking. Section 25 of the Federal Reserve Act,
referred to in subsec. (a)(5), is classified to subchapter I (Sec. 601
et seq.) of chapter 6 of Title 12
Section 206 of the Gramm-Leach-Bliley Act, referred to in subsecs.
(b) and (d), is section 206 of Pub. L. 106-102 which is set out as a
note under section 78c of Title 15, Commerce and Trade.
Codification
Section was enacted as part of the Legal Certainty for Bank Products
Act of 2000, and also as part of the Commodity Futures Modernization Act
of 2000, and not as part of the Commodity Exchange Act which comprises
this chapter.
Short Title
For short title of sections 27 to 27f of this title as the ``Legal
Certainty for Bank Products Act of 2000'', see section 1(a)(5) [title
IV, Sec. 401] of Pub. L. 106-554, set out as a Short Title of 2000
Amendment note under section 1 of this title.
Section Referred to in Other Sections
This section is referred to in sections 1a, 2, 7a-1, 16, 27d, 27f of
this title; title 15 section 78c.
