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The exercise of a contractual right of a
repo participant or
financial participant to cause the liquidation, termination,
or acceleration of a
repurchase agreement because of a condition of the kind
specified in section
365(e)(1) of this title shall not be stayed, avoided,
or otherwise limited by operation of any provision of this
title or by order of a court or administrative agency in
any proceeding under this title, unless, where the
debtor is a
stockbroker or
securities clearing agency, such order is authorized
under the provisions of the Securities Investor Protection
Act of 1970
or any statute administered by the Securities and Exchange
Commission. In the event that a
repo participant or
financial participant liquidates one or more
repurchase agreements with a
debtor and under the terms of one or more such agreements
has agreed to deliver assets subject to
repurchase agreements to the
debtor, any excess of the market prices received on
liquidation of such assets (or if any such assets are not
disposed of on the date of liquidation of such
repurchase agreements, at the prices available at the
time of liquidation of such
repurchase agreements from a generally recognized source
or the most recent closing bid quotation from such a source)
over the sum of the stated repurchase prices and all expenses
in connection with the liquidation of such
repurchase agreements shall be deemed property of the
estate, subject to the available rights of setoff. 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.
(Added Pub. L. 98-353, title III, § 396(a), July 10,
1984, 98 Stat. 366; amended Pub. L.
103-394, title V, § 501(d)(21), Oct. 22, 1994,
108 Stat. 4146; Pub. L.
109-8, Title IX, §
907(i),
(o), April 20, 2005, 119 Stat. 178, 182.)
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