“Financial Netting Improvements Act of 2006”

On December 12, 2006, the President signed into law Public Law 109-390, the Financial Netting Improvements Act of 2006 (the “Act”), which modifies several of the “safe harbor” protections of the United States Bankruptcy Code (the “Code”) available to derivatives counterparties. 

This Stroock Special Bulletin summarizes the key Code changes, and following the summary includes a comparison to the existing Code. The Act is effective in bankruptcy cases filed on or after December 12, 2006