{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1501.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1501.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1501.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1501.html"}],"law_id":70981,"edition_id":1,"section_id":70981,"structure_id":15197,"section_number":"38.2-1501","catch_line":"Definitions","history":"1952, c. 317, \u00a7 38.1-127; 1986, c. 562; 2011, c. 198; 2015, c. 710.","full_text":"As used in this chapter:\n\t\t“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.\n\t\t“Association” means the Virginia Property and Casualty Insurance Guaranty Association created by Chapter 16 (\u00a7 38.2-1600 et seq.) or the Virginia Life, Accident and Sickness Insurance Guaranty Association created by Chapter 17 (\u00a7 38.2-1700 et seq.) or any person performing a similar function in another state.\n\t\t“Commodity contract” means:\n\n1\n\nA 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\n\nAn 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\n\nAn 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\n\nAny combination of the agreements or transactions referred to in this definition; or5\n\nAny option to enter into an agreement or transaction referred to in this definition.\n\t\t\t“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.\n\t\t\t“Delinquency proceeding” means any proceeding commenced against an insurance company for the purpose of liquidating, rehabilitating, reorganizing, or conserving an insurer.\n\t\t\t“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.\n\t\t\t“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.\n\t\t\t“Netting agreement” means:1\n\nA 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\n\nAny master agreement or bridge agreement for one or more master agreements described in subdivision 1 of this definition; or3\n\nAny 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.\n\t\t\t“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.\n\t\t\t“Receiver” means the Commission or any person appointed to manage delinquency proceedings.","order_by":null,"text":{"0":{"id":255974,"text":"As used in this chapter:\n\t\t“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.\n\t\t“Association” means the Virginia Property and Casualty Insurance Guaranty Association created by Chapter 16 (\u00a7 38.2-1600 et seq.) or the Virginia Life, Accident and Sickness Insurance Guaranty Association created by Chapter 17 (\u00a7 38.2-1700 et seq.) or any person performing a similar function in another state.\n\t\t“Commodity contract” means:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":255975,"text":"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;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":255976,"text":"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;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":255977,"text":"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;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":255978,"text":"Any combination of the agreements or transactions referred to in this definition; or","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":255979,"text":"Any option to enter into an agreement or transaction referred to in this definition.\n\t\t\t“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.\n\t\t\t“Delinquency proceeding” means any proceeding commenced against an insurance company for the purpose of liquidating, rehabilitating, reorganizing, or conserving an insurer.\n\t\t\t“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.\n\t\t\t“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.\n\t\t\t“Netting agreement” means:","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"1"},"6":{"id":255980,"text":"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;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"5","next_prefix":"2"},"7":{"id":255981,"text":"Any master agreement or bridge agreement for one or more master agreements described in subdivision 1 of this definition; or","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"8":{"id":255982,"text":"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.\n\t\t\t“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.\n\t\t\t“Receiver” means the Commission or any person appointed to manage delinquency proceedings.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":15197,"edition_id":1,"name":"Rehabilitation and Liquidation of Insurers","identifier":"15","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:52:54","date_modified":"2026-06-26 03:52:54","permalink":{"id":212117,"object_type":"structure","relational_id":15197,"identifier":"15","token":"38.2\/15","url":"\/38.2\/15\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66658,"structure_id":15197,"section_number":"38.2-1500","catch_line":"Scope of chapter","url":"\/38.2-1500\/","token":"38.2\/15\/38.2-1500","metadata":false},{"id":70981,"structure_id":15197,"section_number":"38.2-1501","catch_line":"Definitions","url":"\/38.2-1501\/","token":"38.2\/15\/38.2-1501","metadata":false},{"id":70456,"structure_id":15197,"section_number":"38.2-1502","catch_line":"Jurisdiction and procedure","url":"\/38.2-1502\/","token":"38.2\/15\/38.2-1502","metadata":false},{"id":69543,"structure_id":15197,"section_number":"38.2-1503","catch_line":"Grounds for delinquency proceedings commenced by Commission against domestic insurer","url":"\/38.2-1503\/","token":"38.2\/15\/38.2-1503","metadata":false},{"id":57983,"structure_id":15197,"section_number":"38.2-1504","catch_line":"Requirements when proceedings instituted by any person other than Commission","url":"\/38.2-1504\/","token":"38.2\/15\/38.2-1504","metadata":false},{"id":75038,"structure_id":15197,"section_number":"38.2-1505","catch_line":"Commission may apply for receiver and for other relief; what orders court may enter","url":"\/38.2-1505\/","token":"38.2\/15\/38.2-1505","metadata":false},{"id":68865,"structure_id":15197,"section_number":"38.2-1506","catch_line":"Requirements when receiver appointed; disbursement of available assets to association, etc","url":"\/38.2-1506\/","token":"38.2\/15\/38.2-1506","metadata":false},{"id":81475,"structure_id":15197,"section_number":"38.2-1507","catch_line":"Further procedure; injunction may be issued","url":"\/38.2-1507\/","token":"38.2\/15\/38.2-1507","metadata":false},{"id":75610,"structure_id":15197,"section_number":"38.2-1508","catch_line":"Powers of Commission when authorized to rehabilitate or liquidate companies","url":"\/38.2-1508\/","token":"38.2\/15\/38.2-1508","metadata":false},{"id":66006,"structure_id":15197,"section_number":"38.2-1509","catch_line":"Powers of Commission when authorized to rehabilitate or liquidate insurers by court order; disbursement of available assets to an association, etc","url":"\/38.2-1509\/","token":"38.2\/15\/38.2-1509","metadata":false},{"id":84217,"structure_id":15197,"section_number":"38.2-1510","catch_line":"Commission may appoint assistants in connection with rehabilitation or liquidation","url":"\/38.2-1510\/","token":"38.2\/15\/38.2-1510","metadata":false},{"id":69985,"structure_id":15197,"section_number":"38.2-1511","catch_line":"Borrowing on pledge of assets","url":"\/38.2-1511\/","token":"38.2\/15\/38.2-1511","metadata":false},{"id":69044,"structure_id":15197,"section_number":"38.2-1512","catch_line":"Rights and liabilities fixed upon liquidation","url":"\/38.2-1512\/","token":"38.2\/15\/38.2-1512","metadata":false},{"id":77564,"structure_id":15197,"section_number":"38.2-1513","catch_line":"Voidable transfers","url":"\/38.2-1513\/","token":"38.2\/15\/38.2-1513","metadata":false},{"id":60160,"structure_id":15197,"section_number":"38.2-1514","catch_line":"Priority of claims for wages","url":"\/38.2-1514\/","token":"38.2\/15\/38.2-1514","metadata":false},{"id":75937,"structure_id":15197,"section_number":"38.2-1515","catch_line":"Mutual debts or credits, how treated","url":"\/38.2-1515\/","token":"38.2\/15\/38.2-1515","metadata":false},{"id":82543,"structure_id":15197,"section_number":"38.2-1516","catch_line":"Receivers to file reports, etc., with Commission","url":"\/38.2-1516\/","token":"38.2\/15\/38.2-1516","metadata":false},{"id":81714,"structure_id":15197,"section_number":"38.2-1517","catch_line":"What included in annual report of Commission","url":"\/38.2-1517\/","token":"38.2\/15\/38.2-1517","metadata":false},{"id":70097,"structure_id":15197,"section_number":"38.2-1518","catch_line":"Rehabilitation or mutualization of companies","url":"\/38.2-1518\/","token":"38.2\/15\/38.2-1518","metadata":false},{"id":57858,"structure_id":15197,"section_number":"38.2-1519","catch_line":"Termination of rehabilitation; when liquidation may be entered","url":"\/38.2-1519\/","token":"38.2\/15\/38.2-1519","metadata":false},{"id":68871,"structure_id":15197,"section_number":"38.2-1520","catch_line":"Liquidation of alien insurers","url":"\/38.2-1520\/","token":"38.2\/15\/38.2-1520","metadata":false},{"id":60418,"structure_id":15197,"section_number":"38.2-1521","catch_line":"Conservation of assets of foreign or alien insurer; when liquidation may be entered","url":"\/38.2-1521\/","token":"38.2\/15\/38.2-1521","metadata":false},{"id":83355,"structure_id":15197,"section_number":"38.2-1522","catch_line":"Qualified financial contracts","url":"\/38.2-1522\/","token":"38.2\/15\/38.2-1522","metadata":false}],"previous_section":{"id":66658,"structure_id":15197,"section_number":"38.2-1500","catch_line":"Scope of chapter","url":"\/38.2-1500\/","token":"38.2\/15\/38.2-1500","metadata":false},"next_section":{"id":70456,"structure_id":15197,"section_number":"38.2-1502","catch_line":"Jurisdiction and procedure","url":"\/38.2-1502\/","token":"38.2\/15\/38.2-1502","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1501\/","history_text":"

This law was first created in 1952. The record of its establishment is cataloged in chapter 317 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1952 \u201cActs\u201d aren\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1986, chapter 562; in 2011, chapter 198<\/a>; in 2015, chapter 710<\/a>.<\/p>","references":false,"refers_to":[{"id":83355,"section_number":"38.2-1522","catch_line":"Qualified financial contracts","order_by":null,"url":"\/38.2-1522\/"},{"id":69368,"section_number":"38.2-1600","catch_line":"Purpose","order_by":null,"url":"\/38.2-1600\/"},{"id":85176,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","order_by":null,"url":"\/38.2-1700\/"}],"permalink":{"id":212123,"object_type":"law","relational_id":70981,"identifier":"38.2-1501","token":"38.2\/15\/38.2-1501","url":"\/38.2-1501\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1501\/","token":"38.2\/15\/38.2-1501","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1501","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter:\n\t\t“Actual direct compensatory damages<\/span>” does not include punitive damages<\/span>, damages<\/span> for lost profit or lost opportunity, or damages<\/span> for pain and suffering, but does include normal and reasonable costs of cover or other reasonable measures of damages<\/span> utilized in the derivatives, securities, or other market for the contract<\/span> and agreement claims.\n\t\t“Association<\/span>” means the Virginia Property and Casualty Insurance<\/span> Guaranty Association<\/span> created by Chapter 16 (\u00a7 38.2-1600<\/a> et seq.) or the Virginia Life, Accident and Sickness Insurance<\/span> Guaranty Association<\/span> created by Chapter 17 (\u00a7 38.2-1700<\/a> et seq.) or any person<\/span> performing a similar function in another state<\/span>.\n\t\t“Commodity contract<\/span>” means:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A contract<\/span> for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a board of trade or contract<\/span> market under the Commodity Exchange Act (7 U.S.C. § 1 et seq.) or a board of trade outside the United States<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> 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<\/span>, leverage account, or leverage contract<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> 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; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any combination of the agreements or transactions referred to in this definition; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Any option to enter into an agreement or transaction referred to in this definition.\n\t\t\t“Contractual right<\/span>” as used in § 38.2-1522<\/a> 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<\/span>, a securities clearing agency, a contract<\/span> 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<\/span>, under law merchant, or by reason of normal business practice.\n\t\t\t“Delinquency proceeding<\/span>” means any proceeding commenced against an insurance company<\/span> for the purpose of liquidating, rehabilitating, reorganizing, or conserving an insurer<\/span>.\n\t\t\t“Forward contract<\/span>,” “repurchase agreement,” “securities contract<\/span>,” and “swap agreement” have the meanings set forth with respect thereto in 12 U.S.C. § 1821(e)(8)(D), as amended.\n\t\t\t“Insolvent<\/span>” means (i) the condition of an insurer<\/span> that has liabilities in excess of assets<\/span> or (ii) the inability of an insurer<\/span> to pay its obligations as they become due in the usual course of business.\n\t\t\t“Netting agreement” means: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A contract<\/span> or agreement, including terms and conditions incorporated by reference in it, including a master agreement, which master agreement, together with all schedules<\/span>, 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<\/span> and that provides for the netting, liquidation<\/span>, setoff, termination, acceleration, or close-out, under or in connection with one or more qualified financial contracts<\/span> or present or future payment or delivery obligations or payment or delivery entitlements under it, including liquidation<\/span> or close-out values relating to those obligations or entitlements, among the parties to the netting agreement; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any master agreement or bridge agreement for one or more master agreements described in subdivision 1 of this definition; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> 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<\/span> shall be deemed to be a netting agreement only with respect to those agreements or transactions that are qualified financial contracts<\/span>.\n\t\t\t“Qualified financial contract<\/span>” means any commodity contract, forward contract, repurchase agreement, securities contract, swap agreement, or any similar agreement that the Commission<\/span> determines to be a qualified financial contract<\/span> for the purposes of this chapter.\n\t\t\t“Receiver<\/span>” means the Commission<\/span> or any person<\/span> appointed to manage delinquency proceedings<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 38.2-1501)\n\nAs used in this chapter:\n\t\t“Actual direct compensatory damages” does not include punitive\ndamages, damages for lost profit or lost opportunity, or damages for pain and\nsuffering, but does include normal and reasonable costs of cover or other\nreasonable measures of damages utilized in the derivatives, securities, or other\nmarket for the contract and agreement claims.\n\t\t“Association” means the Virginia Property and Casualty Insurance\nGuaranty Association created by Chapter 16 (\u00a7 38.2-1600 et seq.) or the\nVirginia Life, Accident and Sickness Insurance Guaranty Association created by\nChapter 17 (\u00a7 38.2-1700 et seq.) or any person performing a similar function in\nanother state.\n\t\t“Commodity contract” means:\n\n1. A contract for the purchase or sale of a commodity for future delivery on, or\nsubject to the rules of, a board of trade or contract market under the Commodity\nExchange Act (7 U.S.C. § 1 et seq.) or a board of trade outside the United\nStates;\n\n2. An agreement that is subject to regulation under § 19 of the Commodity\nExchange Act (7 U.S.C. § 1 et seq.) and that is commonly known to the\ncommodities trade as a margin account, margin contract, leverage account, or\nleverage contract;\n\n3. An agreement or transaction that is subject to regulation under § 4c(b)\nof the Commodity Exchange Act (7 U.S.C. § 1 et seq.) and that is commonly\nknown to the commodities trade as a commodity option;\n\n4. Any combination of the agreements or transactions referred to in this\ndefinition; or\n\n5. Any option to enter into an agreement or transaction referred to in this\ndefinition.\n\t\t\t“Contractual right” as used in § 38.2-1522 includes any\nright set forth in a rule or bylaw of a derivatives clearing organization as\ndefined in the Commodity Exchange Act, a multilateral clearing organization as\ndefined in the Federal Deposit Insurance Corporation Improvement Act of 1991, a\nnational securities exchange, a national securities association, a securities\nclearing agency, a contract market designated under the Commodity Exchange Act,\na derivatives transaction execution facility registered under the Commodities\nExchange Act, or a board of trade as defined in the Commodity Exchange Act, or\nin a resolution of the governing board thereof and any right, whether or not\nevidenced in writing, arising under statutory or common law, under law merchant,\nor by reason of normal business practice.\n\t\t\t“Delinquency proceeding” means any proceeding commenced against\nan insurance company for the purpose of liquidating, rehabilitating,\nreorganizing, or conserving an insurer.\n\t\t\t“Forward contract,” “repurchase agreement,”\n“securities contract,” and “swap agreement” have the\nmeanings set forth with respect thereto in 12 U.S.C. § 1821(e)(8)(D), as\namended.\n\t\t\t“Insolvent” means (i) the condition of an insurer that has\nliabilities in excess of assets or (ii) the inability of an insurer to pay its\nobligations as they become due in the usual course of business.\n\t\t\t“Netting agreement” means:\n\n1. A contract or agreement, including terms and conditions incorporated by\nreference in it, including a master agreement, which master agreement, together\nwith all schedules, confirmations, definitions, and addenda to it and\ntransactions under any of them, shall be treated as one netting agreement, that\ndocuments one or more transactions between the parties to the agreement for or\ninvolving one or more qualified financial contracts and that provides for the\nnetting, liquidation, setoff, termination, acceleration, or close-out, under or\nin connection with one or more qualified financial contracts or present or\nfuture payment or delivery obligations or payment or delivery entitlements under\nit, including liquidation or close-out values relating to those obligations or\nentitlements, among the parties to the netting agreement;\n\n2. Any master agreement or bridge agreement for one or more master agreements\ndescribed in subdivision 1 of this definition; or\n\n3. Any security agreement or arrangement or other credit enhancement or\nguarantee or reimbursement obligation related to any contract or agreement\ndescribed in subdivision 1 or 2 of this definition, provided that any contract\nor agreement described in subdivision 1 or 2 of this definition relating to\nagreements or transactions that are not qualified financial contracts shall be\ndeemed to be a netting agreement only with respect to those agreements or\ntransactions that are qualified financial contracts.\n\t\t\t“Qualified financial contract” means any commodity contract,\nforward contract, repurchase agreement, securities contract, swap agreement, or\nany similar agreement that the Commission determines to be a qualified financial\ncontract for the purposes of this chapter.\n\t\t\t“Receiver” means the Commission or any person appointed to manage\ndelinquency proceedings.\n\nHISTORY: 1952, c. 317, \u00a7 38.1-127; 1986, c. 562; 2011, c. 198; 2015, c. 710.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}