Certain operational requirements.

CFR · 2024-01-01 · US · Title 12

(a) (1) Conduct sufficient legal review to conclude with a well-founded basis (and maintain sufficient written documentation of that legal review) that: (i) The agreement meets the requirements of the definition of qualifying master netting agreement in § 329.3; and (ii) In the event of a legal challenge (including one resulting from default or from receivership, bankruptcy, insolvency, liquidation, resolution, or similar proceeding) the relevant judicial and administrative authorities would find the agreement to be legal, valid, binding, and enforceable under the law of the relevant jurisdictions; and (2) Establish and maintain written procedures to monitor possible changes in relevant law and to ensure that the agreement continues to satisfy the requirements of the definition of qualifying master netting agreement in § 329.3. (b) (1) The related operational services must be performed pursuant to a legally binding written agreement, and: (i) The termination of the agreement must be subject to a minimum 30 calendar-day notice period; or (ii) As a result of termination of the agreement or transfer of services to a third-party provider, the customer providing the deposit would incur significant contractual termination costs or switching costs (switching costs include significant technology, administrative, and legal service costs incurred in connection with the transfer of the (2) The deposit must be held in an account designated as an operational account; (3) The customer must

official document · source cfr-2024 · id 12:§ 329.4