Findings and purpose
The Congress finds that—
many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations;
the efficient processing of such transactions is essential to a smoothly functioning economy;
such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;
such netting procedures would reduce the systemic risk within the banking system and financial markets; and
the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.
(Pub. L. 102–242, title IV, § 401, Dec. 19, 1991, 105 Stat. 2371.)