S.Amdt. 4151

SA 4151. Ms. CANTWELL submitted an amendment intended to be proposed
to amendment SA 3789 proposed by Mr. Brownback (for himself, Mr. Bond,
and Mr. Inhofe) to the amendment SA 3739 proposed by Mr. Reid (for Mr.
Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, to promote
the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail'', to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. CONTRACT ENFORCEMENT BETWEEN ELIGIBLE
COUNTERPARTIES.

Notwithstanding any other provision of this Act, section
22(a) of the Commodity Exchange Act (7 U.S.C. 25(a)) is
amended by striking paragraph (4) and inserting the
following:
``(4) Contract enforcement between eligible
counterparties.--
``(A) In general.--No hybrid instrument sold to any
investor shall be void, voidable, or unenforceable, and no
party to a hybrid instrument shall be entitled to rescind, or
recover any payment made with respect to, the hybrid
instrument under this section or any other provision of
Federal or State law, based solely on the failure of the
hybrid instrument to comply with the terms or conditions of
section 2(f) or regulations of the Commission, unless there
is a knowing failure by a party to comply with the terms and
conditions of section 2(f) or regulations of the Commission.
``(B) Swaps.--Unless there is a knowing failure by a party
to comply with the mandatory clearing requirement for swaps
under section 2(h), no agreement, contract, or transaction
between eligible contract participants or persons reasonably
believed to be eligible contract participants shall be void,
voidable, or unenforceable, and no party to an agreement,
contract, or transaction shall be entitled to rescind, or
recover any payment made with respect to, the agreement,
contract, or transaction under this section or any other
provision of Federal or State law, based solely on the
failure of the agreement, contract, or transaction--
``(i) to meet the definition of a swap under section 1a; or
``(ii) to be cleared in accordance with section 2(h)(1).''.
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