Indiana Code 27-9-3.1-11. “Walkaway clause”
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Sec. 11. As used in this chapter, “walkaway clause” means a provision in a netting agreement or qualified financial contract that, after calculation of the value of a party’s position or an amount due to or from a party under the netting agreement or qualified financial contract upon termination, liquidation, or acceleration of the netting agreement or qualified financial contract, either:
(2) voids any part of a payment obligation of a party;
(1) does not create a payment obligation of a party; or
Terms Used In Indiana Code 27-9-3.1-11
- Contract: A legal written agreement that becomes binding when signed.
- netting agreement: means a new agreement that:
Indiana Code 27-9-3.1-6
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- qualified financial contract: means a commodity contract, forward contract, repurchase agreement, securities contract, swap agreement, or a similar agreement, as determined by the commissioner. See Indiana Code 27-9-3.1-7
solely because of the party’s status as a nondefaulting party.
As added by P.L.11-2011, SEC.36.