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U.S. Code as of:
01/19/04
Section 761. Definitions for this subchapter
In this subchapter -
(1) "Act" means Commodity Exchange Act;
(2) "clearing organization" means a derivatives clearing
organization registered under the Act;
(3) "Commission" means Commodity Futures Trading Commission;
(4) "commodity contract" means -
(A) with respect to a futures commission merchant, contract
for the purchase or sale of a commodity for future delivery on,
or subject to the rules of, a contract market or board of
trade;
(B) with respect to a foreign futures commission merchant,
foreign future;
(C) with respect to a leverage transaction merchant, leverage
transaction;
(D) with respect to a clearing organization, contract for the
purchase or sale of a commodity for future delivery on, or
subject to the rules of, a contract market or board of trade
that is cleared by such clearing organization, or commodity
option traded on, or subject to the rules of, a contract market
or board of trade that is cleared by such clearing
organization; or
(E) with respect to a commodity options dealer, commodity
option;
(5) "commodity option" means agreement or transaction subject
to regulation under section 4c(b) of the Act;
(6) "commodity options dealer" means person that extends credit
to, or that accepts cash, a security, or other property from, a
customer of such person for the purchase or sale of an interest
in a commodity option;
(7) "contract market" means a registered entity;
(8) "contract of sale", "commodity", "derivatives clearing
organization", "future delivery", "board of trade", "registered
entity", and "futures commission merchant" have the meanings
assigned to those terms in the Act;
(9) "customer" means -
(A) with respect to a futures commission merchant -
(i) entity for or with whom such futures commission
merchant deals and that holds a claim against such futures
commission merchant on account of a commodity contract made,
received, acquired, or held by or through such futures
commission merchant in the ordinary course of such futures
commission merchant's business as a futures commission
merchant from or for the commodity futures account of such
entity; or
(ii) entity that holds a claim against such futures
commission merchant arising out of -
(I) the making, liquidation, or change in the value of a
commodity contract of a kind specified in clause (i) of
this subparagraph;
(II) a deposit or payment of cash, a security, or other
property with such futures commission merchant for the
purpose of making or margining such a commodity contract;
or
(III) the making or taking of delivery on such a
commodity contract;
(B) with respect to a foreign futures commission merchant -
(i) entity for or with whom such foreign futures commission
merchant deals and that holds a claim against such foreign
futures commission merchant on account of a commodity
contract made, received, acquired, or held by or through such
foreign futures commission merchant in the ordinary course of
such foreign futures commission merchant's business as a
foreign futures commission merchant from or for the foreign
futures account of such entity; or
(ii) entity that holds a claim against such foreign futures
commission merchant arising out of -
(I) the making, liquidation, or change in value of a
commodity contract of a kind specified in clause (i) of
this subparagraph;
(II) a deposit or payment of cash, a security, or other
property with such foreign futures commission merchant for
the purpose of making or margining such a commodity
contract; or
(III) the making or taking of delivery on such a
commodity contract;
(C) with respect to a leverage transaction merchant -
(i) entity for or with whom such leverage transaction
merchant deals and that holds a claim against such leverage
transaction merchant on account of a commodity contract
engaged in by or with such leverage transaction merchant in
the ordinary course of such leverage transaction merchant's
business as a leverage transaction merchant from or for the
leverage account of such entity; or
(ii) entity that holds a claim against such leverage
transaction merchant arising out of -
(I) the making, liquidation, or change in value of a
commodity contract of a kind specified in clause (i) of
this subparagraph;
(II) a deposit or payment of cash, a security, or other
property with such leverage transaction merchant for the
purpose of entering into or margining such a commodity
contract; or
(III) the making or taking of delivery on such a
commodity contract;
(D) with respect to a clearing organization, clearing member
of such clearing organization with whom such clearing
organization deals and that holds a claim against such clearing
organization on account of cash, a security, or other property
received by such clearing organization to margin, guarantee, or
secure a commodity contract in such clearing member's
proprietary account or customers' account; or
(E) with respect to a commodity options dealer -
(i) entity for or with whom such commodity options dealer
deals and that holds a claim on account of a commodity
contract made, received, acquired, or held by or through such
commodity options dealer in the ordinary course of such
commodity options dealer's business as a commodity options
dealer from or for the commodity options account of such
entity; or
(ii) entity that holds a claim against such commodity
options dealer arising out of -
(I) the making of, liquidation of, exercise of, or a
change in value of, a commodity contract of a kind
specified in clause (i) of this subparagraph; or
(II) a deposit or payment of cash, a security, or other
property with such commodity options dealer for the purpose
of making, exercising, or margining such a commodity
contract;
(10) "customer property" means cash, a security, or other
property, or proceeds of such cash, security, or property,
received, acquired, or held by or for the account of the debtor,
from or for the account of a customer -
(A) including -
(i) property received, acquired, or held to margin,
guarantee, secure, purchase, or sell a commodity contract;
(ii) profits or contractual or other rights accruing to a
customer as a result of a commodity contract;
(iii) an open commodity contract;
(iv) specifically identifiable customer property;
(v) warehouse receipt or other document held by the debtor
evidencing ownership of or title to property to be delivered
to fulfill a commodity contract from or for the account of a
customer;
(vi) cash, a security, or other property received by the
debtor as payment for a commodity to be delivered to fulfill
a commodity contract from or for the account of a customer;
(vii) a security held as property of the debtor to the
extent such security is necessary to meet a net equity claim
based on a security of the same class and series of an
issuer;
(viii) property that was unlawfully converted from and that
is the lawful property of the estate; and
(ix) other property of the debtor that any applicable law,
rule, or regulation requires to be set aside or held for the
benefit of a customer, unless including such property as
customer property would not significantly increase customer
property; but
(B) not including property to the extent that a customer does
not have a claim against the debtor based on such property;
(11) "foreign future" means contract for the purchase or sale
of a commodity for future delivery on, or subject to the rules
of, a board of trade outside the United States;
(12) "foreign futures commission merchant" means entity engaged
in soliciting or accepting orders for the purchase or sale of a
foreign future or that, in connection with such a solicitation or
acceptance, accepts cash, a security, or other property, or
extends credit to margin, guarantee, or secure any trade or
contract that results from such a solicitation or acceptance;
(13) "leverage transaction" means agreement that is subject to
regulation under section 19 of the Commodity Exchange Act, and
that is commonly known to the commodities trade as a margin
account, margin contract, leverage account, or leverage contract;
(14) "leverage transaction merchant" means person in the
business of engaging in leverage transactions;
(15) "margin payment" means payment or deposit of cash, a
security, or other property, that is commonly known to the
commodities trade as original margin, initial margin, maintenance
margin, or variation margin, including mark-to-market payments,
settlement payments, variation payments, daily settlement
payments, and final settlement payments made as adjustments to
settlement prices;
(16) "member property" means customer property received,
acquired, or held by or for the account of a debtor that is a
clearing organization, from or for the proprietary account of a
customer that is a clearing member of the debtor; and
(17) "net equity" means, subject to such rules and regulations
as the Commission promulgates under the Act, with respect to the
aggregate of all of a customer's accounts that such customer has
in the same capacity -
(A) the balance remaining in such customer's accounts
immediately after -
(i) all commodity contracts of such customer have been
transferred, liquidated, or become identified for delivery;
and
(ii) all obligations of such customer in such capacity to
the debtor have been offset; plus
(B) the value, as of the date of return under section 766 of
this title, of any specifically identifiable customer property
actually returned to such customer before the date specified in
subparagraph (A) of this paragraph; plus
(C) the value, as of the date of transfer, of -
(i) any commodity contract to which such customer is
entitled that is transferred to another person under section
766 of this title; and
(ii) any cash, security, or other property of such customer
transferred to such other person under section 766 of this
title to margin or secure such transferred commodity
contract.
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