                                 CODE OF VIRGINIA

DEFINITIONS (§ 38.2-1501)

As used in this chapter:
		&#8220;Actual direct compensatory damages&#8221; 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.
		&#8220;Association&#8221; 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.
		&#8220;Commodity contract&#8221; 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. &#xA7; 1 et seq.) or a board of trade outside the United
States;

2. An agreement that is subject to regulation under &#xA7; 19 of the Commodity
Exchange Act (7 U.S.C. &#xA7; 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 &#xA7; 4c(b)
of the Commodity Exchange Act (7 U.S.C. &#xA7; 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.
			&#8220;Contractual right&#8221; as used in &#xA7; 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.
			&#8220;Delinquency proceeding&#8221; means any proceeding commenced against
an insurance company for the purpose of liquidating, rehabilitating,
reorganizing, or conserving an insurer.
			&#8220;Forward contract,&#8221; &#8220;repurchase agreement,&#8221;
&#8220;securities contract,&#8221; and &#8220;swap agreement&#8221; have the
meanings set forth with respect thereto in 12 U.S.C. &#xA7; 1821(e)(8)(D), as
amended.
			&#8220;Insolvent&#8221; 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.
			&#8220;Netting agreement&#8221; 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.
			&#8220;Qualified financial contract&#8221; 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.
			&#8220;Receiver&#8221; 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.