CODE OF VIRGINIA

DEFINITIONS (§ 38.2-1501)

As used in this chapter:

   “Actual direct compensatory damages” does not include punitive
   damages, damages for lost profit or lost opportunity, or damages for pain and
   suffering, but does include normal and reasonable costs of cover or other
   reasonable measures of damages utilized in the derivatives, securities, or
   other market for the contract and agreement claims.”Association”
   means the Virginia Property and Casualty Insurance Guaranty Association
   created by Chapter 16 (§ 38.2-1600 et seq.) or the Virginia Life, Accident
   and Sickness Insurance Guaranty Association created by Chapter 17 (§
   38.2-1700 et seq.) or any person performing a similar function in another
   state.

“Commodity contract” means:

   1.  A contract for the purchase or sale of a commodity for future delivery on,
   or subject to the rules of, a board of trade or contract market under the
   Commodity Exchange Act (7 U.S.C. § 1 et seq.) or a board of trade outside the
   United States;

   2.  An agreement that is subject to regulation under § 19 of the Commodity
   Exchange Act (7 U.S.C. § 1 et seq.) and that is commonly known to the
   commodities trade as a margin account, margin contract, leverage account, or
   leverage contract;

   3.  An agreement or transaction that is subject to regulation under § 4c(b)
   of the Commodity Exchange Act (7 U.S.C. § 1 et seq.) and that is commonly
   known to the commodities trade as a commodity option;

   4.  Any combination of the agreements or transactions referred to in this
   definition; or

   5.  Any option to enter into an agreement or transaction referred to in this
   definition.

“Contractual right” as used in § 38.2-1522 includes any 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 Commodities
Exchange Act, or a board of trade as defined in the Commodity Exchange Act, or
in a resolution of the governing board thereof and any right, whether or not
evidenced in writing, arising under statutory or common law, under law merchant,
or by reason of normal business practice.”Delinquency proceeding”
means any proceeding commenced against an insurance company for the purpose of
liquidating, rehabilitating, reorganizing, or conserving an
insurer.”Forward contract,” “repurchase agreement,”
“securities contract,” and “swap agreement” have the
meanings set forth with respect thereto in 12 U.S.C. § 1821(e)(8)(D), as
amended.”Insolvent” means (i) the condition of an insurer that has
liabilities in excess of assets or (ii) the inability of an insurer to pay its
obligations as they become due in the usual course of business.”Netting
agreement” means:

   1.  A contract or agreement, including terms and conditions incorporated by
   reference in it, including a master agreement, which master agreement,
   together with all schedules, confirmations, definitions, and addenda to it and
   transactions under any of them, shall be treated as one netting agreement,
   that documents one or more transactions between the parties to the agreement
   for or involving one or more qualified financial contracts and that provides
   for the netting, liquidation, setoff, termination, acceleration, or close-out,
   under or in connection with one or more qualified financial contracts or
   present or future payment or delivery obligations or payment or delivery
   entitlements under it, including liquidation or close-out values relating to
   those obligations or entitlements, among the parties to the netting agreement;

   2.  Any master agreement or bridge agreement for one or more master agreements
   described in subdivision 1 of this definition; or

   3.  Any security agreement or arrangement or other credit enhancement or
   guarantee or reimbursement obligation related to any contract or agreement
   described in subdivision 1 or 2 of this definition, provided that any contract
   or agreement described in subdivision 1 or 2 of this definition relating to
   agreements or transactions that are not qualified financial contracts shall be
   deemed to be a netting agreement only with respect to those agreements or
   transactions that are qualified financial contracts.

“Qualified financial contract” means any commodity contract, forward
contract, repurchase agreement, securities contract, swap agreement, or any
similar agreement that the Commission determines to be a qualified financial
contract for the purposes of this chapter.”Receiver” means the
Commission or any person appointed to manage delinquency proceedings.

HISTORY: 1952, c. 317, § 38.1-127; 1986, c. 562; 2011, c. 198; 2015, c. 710.