,,ii #aad? ,,congress #b;d ,session ,s4 #ceje ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #f1 #bjaf ,mr4 ,re$ 7= himself1 ,mr4 ,br[n1 ,mr4 ,m]kley1 ,mr4 ,:iteh\se1 & ,mr4 ,blum5?al7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to require analysis ( v>i\s bankruptcy proposals 9 ord] to det]m9e :e!r ^? proposals w\ld r$uce sy/emic risk & moral haz>d1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,bankruptcy ,fairness ,act ( #bjaf4 #b4 ,def9itions ,9 ?is ,act-- 7#a7 ! t]m analytical "w means an article1 a !sis1 a /udy1 te/imony1 a spee*1 or a report t-- 7,a7 is writt51 giv51 or conduct$ by-- 7i7 a ,f$]al or ,/ate ag5cy2 7ii7 a ,f$]al ,gov]nm5t or ,/ate gov]nm5t (ficial2 7iii7 a policy organization2 7iv7 a pr(essional association2 7v7 an academic2 7vi7 a bankruptcy judge1 tru/ee1 or exam9]2 7vii7 a work+ gr\p2 7viii7 a commission2 or 7ix7 a p]son1 entity1 or body simil> to ^? describ$ 9 clauses 7i7 ?r\gh 7viii72 & 7,b7 conta9s an analysis (1 & conclusions or recomm5dations ) respect to1 a p>ticul> topic2 7#b7 ! t]m avoidance action safe h>bor means subsections 7e71 7f71 7g71 7h71 & 7j7 ( section #edf ( ! ,bankruptcy ,code2 7#c7 ! t]m bank hold+ company has ! mean+ giv5 ! t]m 9 section #ajb ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecaa72 7#d7 ! t]m ,bankruptcy ,code means title #aa1 ,unit$ ,/ates ,code2 7#e7 ! t]m bridge company means a bridge company t-- 7,a7 managem5t may create "u ! propos$ sub*apt]2 & 7,b7 has no assets & no liabilities2 7#f7 ! t]m bus9ess judgm5t rule means ! /&>d to :i* a tru/ee or debtor 9 possession is typically held 9 a bankruptcy case 9 det]m9+ :e!r ! assumption1 or assumption & assignm5t1 ( an executory contract "u section #cfe ( ! ,bankruptcy ,code is 9 ! be/ int]e/s ( cr$itors & ! e/ate2 7#g7 ! t]m collat]al haircut means ! diff]5ce betwe5 ! m>ket value ( an asset t is us$ z loan collat]al & ! am\nt ( t loan2 7#h7 ! t]m committees ( jurisdiction means-- 7,a7 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate2 7,b7 ! ,committee on ! ,judici>y ( ! ,s5ate2 7,c7 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives2 & 7,d7 ! ,committee on ! ,judici>y ( ! ,h\se ( ,repres5tatives2 7#i7 ! t]m ,c\ncil means ! ,f9ancial ,/ability ,ov]sight ,c\ncil2 7#aj7 ! t]m f9ancial company has ! mean+ giv5 ! t]m 9 section #bja7;a7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa7;a772 7#aa7 ! t]m hypo!tical bank hold+ company means a fictional bank hold+ company t has-- 7,a7 a corporate organizational /ructure typical ( ! bus9ess /ructure ( ! #f l>ge/ bank hold+ companies bas$ 9 ! ,unit$ ,/ates1 z measur$ by balance %eet assets on ,decemb] #ca1 #bjaf1 ! hold+s ( :i* include comm]cial bank+1 capital m>kets1 global asset managem5t1 & transaction s]vices2 7,b7 assets & liabilities repres5t+ ! m$ian ( ! assets & liabilities held by ! #f l>ge/ bank hold+ companies bas$ 9 ! ,unit$ ,/ates1 z measur$ by balance %eet assets on ,decemb] #ca1 #bjaf2 & 7,c7 a global d]ivatives trad+ book repres5t+ ! m$ian ( ! gross notional value ( ! #f l>ge/ bank hold+ companies bas$ 9 ! ,unit$ ,/ates1 z measur$ by balance %eet assets on ,decemb] #ca1 #bjaf2 7#ab7 ! t]m managem5t means ! (fic]s & memb]s ( ! bo>d ( directors ( a f9ancial company2 7#ac7 ! t]m ma/] nett+ agreem5t means an agreem5t provid+ =-- 7,a7 ! nett+ ( am\nts due betwe5 or among ! p>ties to #b or m qualifi$ f9ancial contracts on p]iodic reset dates2 & 7,b7 ! ex]cise ( rights1 includ+ rights ( nett+1 set(f1 liquidation1 t]m9ation1 accel]ation1 or close out1 "u #a or m qualifi$ f9ancial contracts ^u ! occurr5ce ( an ev5t ( default2 7#ad7 ! t]m ,,mbs repur*ase agreem5t means a repur*ase agreem5t t provides = ! transf] ( #a or m-- 7,a7 mortgage relat$ securities2 7,b7 mortgage loans2 or 7,c7 int]e/s 9 mortgage relat$ securities or mortgage loans2 7#ae7 ! t]m mortgage relat$ security has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a772 7#af7 ! t]m ,(fice means ! ,(fice ( ,f9ancial ,rese>*2 7#ag7 ! t]m prim>y f9ancial regulatory ag5cy has ! mean+ giv5 ! t]m 9 section #b ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecja72 7#ah7 ! t]m propos$ sub*apt] means a hypo!tical new sub*apt] to *apt] #aa ( ! ,bankruptcy ,code t includes provisions specifically applicable to a f9ancial company bankruptcy & p]mits-- 7,a7 managem5t to file1 on behalf ( ! f9ancial company controll$ by managem5t1 a petition "u ! ,bankruptcy ,code2 7,b7 managem5t to create a bridge company2 7,c7 managem5t to sup]vise ! draft+ ( ! gov]n+ docum5ts = ! bridge company2 7,d7 managem5t to propose ! initial directors & s5ior (fic]s ( ! bridge company2 7,e7 n lat] ?an #dh h\rs aft] ! fil+ ( ! petition1 ! assets ( ! f9ancial company to be transf]r$ to ! bridge company if ! bankruptcy c\rt has det]m9$ t-- 7i7 su* a transf] is 9 ! be/ int]e/s ( ! bankruptcy e/ate ( ! f9ancial company2 & 7ii7 ! bridge company is n likely to fail to meet ! obligations ( any debt1 executory contract1 qualifi$ f9ancial contract1 or unexpir$ lease t ! bridge company has assum$2 7,f7 7i7 if ! bankruptcy c\rt makes ! det]m9ations describ$ 9 subp>agraph 7,e71 ! bridge company to agree-- 7,i7 to honor1 =ev]1 ! obligations ( ! f9ancial company "u all ( its qualifi$ f9ancial contracts2 7,,ii7 to pay 9 full all ! claims ( any p]son t has a qualifi$ f9ancial contract ) ! f9ancial company2 & 7,,iii7 to pay 9 full ! claims ( und]secur$ cr$itors ( ! f9ancial company t h ev5 a small am\nt ( collat]al2 or 7ii7 if ! bankruptcy c\rt is unable to make bo? ( ! det]m9ations describ$ 9 subp>agraph 7,e71 all qualifi$ f9ancial contracts & ma/] nett+ agreem5ts ( ! f9ancial company to be t]m9at$ imm$iately2 7,g7 managem5t-- 7i7 to leave beh9d 9 ! f9ancial company bankruptcy e/ate ! claims ( all cr$itors1 includ+ employees1 suppli]s1 s]vice provid]s1 & fraud claimants1 t h no collat]al & no qualifi$ f9ancial contracts ) ! f9ancial company2 & 7ii7 to provide ! cr$itors describ$ 9 clause 7i7 )1 in/ead ( a ca% paym5t1 an equity int]e/ 9 ! bridge company t is payable only aft] all ( ! claims describ$ 9 subp>agraph 7,f7 h be5 paid 9 full2 7,h7 ! bridge company to be plac$ "u ! control ( a special tru/ee propos$ by managem5t1 ov] ^: activities ! bankruptcy c\rt has no jurisdiction2 7,i7 ! #bj l>ge/ unsecur$ cr$itors ( ! f9ancial company to receive notice ( only #bd h\rs t ! ev5ts describ$ 9 subp>agraphs 7,a7 ?r\gh 7,h7 w occur2 7,j7 ! small] cr$itors ( ! f9ancial company1 includ+ ! employees1 suppli]s1 s]vice provid]s1 & fraud claimants ( ! f9ancial company1 to receive no notice t ! ev5ts describ$ 9 subp>agraphs 7,a7 ?r\gh 7,h7 w occur2 & 7,k7 managem5t to avoid be+ held liable = mo/ actions tak5 9 connection ) ! fil+1 includ+ ! actions describ$ 9 subp>agraphs 7,a7 ?r\gh 7,h72 7#ai7 ! t]m propos$ sub*apt] ) title ,,ii repeal$ means ! propos$ sub*apt]1 assum+ t title ,,ii1 includ+ ! prohibition aga9/ taxpay] fund+ ( ! liquidation ( a f9ancial company "u section #bad ( t title 7#ab ,u4,s4,c4 #ecid71 has be5 repeal$2 7#bj7 ! t]m qualifi$ f9ancial contract means-- 7,a7 a commodity contract1 commodity option1 =eign future1 or lev]age transaction1 z ^? t]ms are def9$ 9 section #gfa ( ! ,bankruptcy ,code2 7,b7 a =w>d contract1 ma/] nett+ agreem5t1 repur*ase agreem5t1 or swap agreem5t1 z ^? t]ms are def9$ 9 section #aja ( ! ,bankruptcy ,code2 or 7,c7 a securities contract1 z t t]m is def9$ 9 section #gda ( ! ,bankruptcy ,code2 7#ba7 ! t]m regulatory capital means ! am\nt ( capital t a bank hold+ company is requir$ by its prim>y f9ancial regulatory ag5cy to hold on its balance %eet2 7#bb7 ! t]m repur*ase agreem5t has ! mean+ giv5 ! t]m 9 section #aja ( ! ,bankruptcy ,code2 7#bc7 ! t]m safe h>bor means-- 7,a7 ! avoidance action safe h>bor2 & 7,b7 ! t]m9ation & liquidation safe h>bor2 7#bd7 ! t]m t]m9ation & liquidation safe h>bor means-- 7,a7 p>agraphs 7#f71 7#g71 7#ag71 & 7#bg7 ( section #cfb7;b7 ( ! ,bankruptcy ,code2 & 7,b7 sections #eee1 #eef1 #eei1 #efj1 & #efa ( ! ,bankruptcy ,code2 7#be7 ! t]m title ,,ii means title ,,ii ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa et seq472 & 7#bf7 ! t]m ,treasury repur*ase agreem5t means a repur*ase agreem5t t provides = ! transf] ( securities t are direct obligations (1 or t are fully gu>ante$ by1 ! ,unit$ ,/ates4 #c4 ,judicial exp]tise 9 complex f9ancial matt]s & bankruptcy c\rt processes = f9ancial companies 7a7 ,recomm5dations & report ,! ,director ( ! ,adm9i/rative ,(fice ( ! ,unit$ ,/ates ,c\rts1 ! ,director ( ! ,executive ,(fice = ,unit$ ,/ates ,tru/ees1 & ! ,director ( ! ,f$]al ,judicial ,c5t] %all jo9tly1 9 consultation ) ! ,c\ncil & ! ,(fice-- 7#a7 develop1 & p]iodically update1 recomm5dations ) respect to-- 7,a7 ! type ( exp]tise t w\ld enable a judge to ov]see m effectively ! resolution ( a f9ancial company "u ! ,bankruptcy ,code 9 a mann] t prev5ts adv]se impacts on f9ancial /ability 9 ! ,unit$ ,/ates )\t creat+ moral haz>d2 & 7,b7 a process = ensur+ t a suffici5t numb] ( bankruptcy & di/rict c\rt judges-- 7i7 develop & ma9ta9 ! level ( exp]tise describ$ 9 subp>agraph 7,a72 & 7ii7 are available 9 ea* circuit to preside ov] cases t involve f9ancial companies2 7#b7 id5tify1 & p]iodically update ! id5tification (-- 7,a7 provisions 9 ! ,bankruptcy ,code & ! ,f$]al ,rules ( ,bankruptcy ,proc$ure t-- 7i7 increase ! sev]ity ( ! failure ( a f9ancial company2 7ii7 complicate or imp$e ! resolution ( a f9ancial company2 7iii7 unfairly increase ! risk ( loss by ord9>y cr$itors ( a f9ancial company2 7iv7 %ift ! co/s ( ! resolution ( a f9ancial company1 or ! risks ( loss 9 su* a resolution1 away f p]sons t are 9 a position to prev5t or r$uce su* complications1 imp$im5ts1 risks1 or co/s2 7v7 decrease ! likelihood t a f9ancial company w be able to obta9 en\gh private f9anc+ to em]ge successfully f bankruptcy )\t ! ne$ = a taxpay] bail\t or o!r gov]nm5t f9ancial assi/ance2 or 7vi7 o!rwise pose a ?reat to f9ancial /ability 9 ! ,unit$ ,/ates2 7,b7 am5dm5ts to ! ,bankruptcy ,code1 ! ,f$]al ,rules ( ,bankruptcy ,proc$ure1 & o!r /atutes & proc$ural rules t c\ld help prev5t or mitigate ! complications1 imp$im5ts1 risks1 & co/s describ$ 9 subp>agraph 7,a72 & 7,c7 ways 9 :i* f9ancial companies & _! cu/om]s1 inve/ors1 & c\nt]p>ties c\ld adju/ bus9ess practices to prev5t or r$uce ! complications1 imp$im5ts1 risks1 & co/s describ$ 9 subp>agraph 7,a72 & 7#c7 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 & e o!r ye> !reaft]1 submit to ! committees ( jurisdiction a report t sets =? recomm5dations & issues t may help-- 7,a7 facilitate fur!r ! resolution ( a f9ancial company "u ! ,bankruptcy ,code2 & 7,b7 prev5t or mitigate risks to f9ancial /ability 9 ! ,unit$ ,/ates4 7b7 ,issuance ( rule ,n lat] ?an #ah mon?s aft] ! initial report requir$ "u subsection 7a77#c7 is submitt$1 ! ,supreme ,c\rt ( ! ,unit$ ,/ates1 9 consultation ) ! ,c\ncil1 ! ,(fice1 ! ,director ( ! ,adm9i/rative ,(fice ( ! ,unit$ ,/ates ,c\rts1 & ! ,director ( ! ,executive ,(fice = ,unit$ ,/ates ,tru/ees1 %all issue a rule "u section #bjge ( title #bh1 ,unit$ ,/ates ,code1 t provides = ! ord]ly appo9tm5t1 by ! *ief judge ( ! c\rt ( appeals = ! circuit embrac+ ! di/rict 9 :i* a f9ancial company has fil$ a petition1 ( a bankruptcy judge or di/rict c\rt judge hav+ exp]tise 9 ! resolution ( f9ancial companies "u ! ,bankruptcy ,code4 #d4 ,role ( regulators 9 f9ancial company bankruptcy cases ,! ,bankruptcy ,code is am5d$-- 7#a7 9 section #aja1 by ins]t+ aft] p>agraph 7#ba;,b7 ! foll[+3 7#ba;,c7 ,! t]m f9ancial company has ! mean+ giv5 ! t]m 9 section #bja7;a7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa7;a774 2 7#b7 9 section #cjg-- 7,a7 by /rik+ ,! ,unit$ ,/ates & ins]t+ ! foll[+3 7a7 ,9 g5]al ,! ,unit$ ,/ates 2 & 7,b7 by add+ at ! end ! foll[+3 7b7 ,f9ancial companies ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,f$]al ,deposit ,insurance ,corporation1 any prim>y f9ancial regulatory ag5cy ( ! debtor or an affiliate1 & ! ,*airp]son ( ! ,f9ancial ,/ability ,ov]sight ,c\ncil may raise & may appe> & be he>d on any issue 9 any case or proce$+ "u ?is title 9 :i* ! debtor is a f9ancial company4 7c7 ,def9ition ,9 ?is section1 ! t]m prim>y f9ancial regulatory ag5cy has ! mean+ giv5 ! t]m 9 section #b ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecja74 2 7#c7 9 section #cbb7;b77#a71 by ins]t+ 1 or any tru/ee appo9t$ "u section #aajd7;f71 aft] ,! ,unit$ ,/ates tru/ee2 & 7#d7 9 section #aajd-- 7,a7 9 subsection 7b77#a71 9 ! fir/ s5t5ce1 by ins]t+ subsection 7f7 & aft] z provid$ 92 & 7,b7 by add+ at ! end ! foll[+3 7f7 7#a7 ,if ! debtor is a f9ancial company-- 7,a7 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,deposit ,insurance ,corporation1 z soon z practicable aft] ! ord] = relief1 %all submit a li/ ( #e dis9t]e/$ p]sons t are qualifi$ & will+ to s]ve z tru/ees 9 ! case2 & 7,b7 ! ,unit$ ,/ates tru/ee %all appo9t #a ( ! p]sons f ! li/ submitt$ "u subp>agraph 7,a7 to s]ve z tru/ee 9 ! case4 7#b7 ,! resid5ce & (fice requirem5ts set =? 9 section #cba7;a7 %all n apply to a tru/ee appo9t$ "u ?is subsection4 4 #e4 ,/udies & report 7a7 ,9 g5]al ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 & e #b ye>s !reaft]1 ! ,(fice1 9 consultation ) ! ,c\ncil1 au?ors ( relevant analytical works1 memb]s drawn f ! ,f9ancial ,rese>* ,advisory ,committee ( ! ,(fice1 & o!r relevant exp]ts1 %all submit to ! committees ( jurisdiction a report t conta9s-- 7#a7 a summ>y & evaluation ( ! relevant analytical works publi%$ 9 ! #aj ye>s prec$+ ! date ( submission ( ! report ) respect to ! issues describ$ 9 subsections 7b7 ?r\gh 7e72 7#b7 a /atem5t id5tify+ :i* analytical works describ$ 9 p>agraph 7#a7 7 prep>$ or paid = by a p]son1 organization1 or entity t-- 7,a7 has or _h a f9ancial int]e/ 9 ! subject matt] ( ! analytical "w2 or 7,b7 repres5ts1 has repres5t$1 or has receiv$ fund+ or comp5sation f su* a p]son1 organization1 or entity2 & 7#c7 ! results ( ea* ( ! /udies describ$ 9 subsections 7b7 ?r\gh 7e71 includ+ recomm5dations drawn f-- 7,a7 ! orig9al rese>* conduct$ by ! ,(fice2 & 7,b7 ! analytical "w summ>iz$ & evaluat$ "u p>agraph 7#a74 7b7 ,bankruptcy ,code effectiv5ess /udy ,! /udy describ$ 9 ?is subsection %all-- 7#a7 analyze-- 7,a7 ! effectiv5ess ( ! ,bankruptcy ,code1 z 9 effect on ! date ! analysis is und]tak51 9 facilitat+ ! ord]ly resolution ( a f9ancial company1 includ+ :e!r !re are provisions 9 su* ,code t-- 7i7 increase ! likelihood or sev]ity ( failure ( a f9ancial company2 7ii7 complicate or imp$e su* a resolution2 7iii7 pose risks to f9ancial /ability 9 ! ,unit$ ,/ates2 7iv7 %ift ! co/s ( su* a resolution1 or ! risks ( loss 9 su* a resolution1 away f p]sons t are 9 a position to prev5t or r$uce su* complications1 imp$im5ts1 or risks2 or 7v7 create ! risk t su* a resolution c\ld safely occur only ) f9ancial support f ! ,f$]al ,gov]nm5t2 7,b7 :e!r o!r am5dm5ts to ! ,bankruptcy ,code1 z 9 effect on ! date ! analysis is und]tak51 c\ld enhance ! ability ( ! bankruptcy c\rt to resolve a f9ancial company 9 a mann] t c\ld m9imize ! risk ( adv]se impacts 9 f9ancial m>kets :ile-- 7i7 provid+ = fair di/ribution to cr$itors2 7ii7 pres]v+ f9ancial /ability 9 ! ,unit$ ,/ates2 & 7iii7 prev5t+ moral haz>d2 & 7,c7 :e!r am5dm5ts to ! ,bankruptcy ,code1 z 9 effect on ! date ! analysis is und]tak51 & o!r laws relat+ to insolv5cy to modify ! treatm5t ( qualifi$ f9ancial contracts & ma/] nett+ agreem5ts 9 future situations ( insolv5cy c\ld r$uce-- 7i7 losses 9 ! value ( ! f9ancial company & its assets2 7ii7 losses to o!r p>ties 9 int]e/2 7iii7 moral haz>d2 & 7iv7 risks to f9ancial /ability 9 ! ,unit$ ,/ates2 7#b7 9 addition to ! analyses requir$ "u p>agraph 7#a71 analyze ! impacts on-- 7,a7 ! ability ( employees1 o!r cr$itors1 & p>ties 9 int]e/ to recov] am\nts ow$2 7,b7 ! behavior ( c\nt]p>ties & ! economy ( ! ,unit$ ,/ates be=e a bankruptcy case is fil$1 includ+ ! impacts dur+ normal economic conditions & dur+ p]iods ( f9ancial /ress on-- 7i7 ! level ( c>e & caution ex]cis$ be=e ent]+ into qualifi$ f9ancial contracts2 7ii7 ! collat]al haircuts appli$ to ! products describ$ 9 p>agraph 7#c72 & 7iii7 ! level ( risk & lev]age c\nt]p>ties are will+ to accept ) respect to ! products describ$ 9 p>agraph 7#c72 & 7,c7 f9ancial /ability 9 ! ,unit$ ,/ates aft] a bankruptcy case is fil$2 7#c7 9 conduct+ ! analysis requir$ "u p>agraph 7#a7 & p>agraph 7#b71 sep>ately consid] ! impact ( & on-- 7,a7 ,treasury repur*ase agreem5ts2 7,b7 ,,mbs repur*ase agreem5ts2 7,c7 securities l5d+ agreem5ts2 7,d7 int]e/ rate swap agreem5ts2 7,e7 =eign ex*ange =w>d agreem5ts2 & 7,f7 any type ( qualifi$ f9ancial contract t is n li/$ 9 subp>agraphs 7,a7 ?r\gh 7,e7 & t-- 7i7 is cle>$ "u section #b7;h7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;h77 or section #c;,c ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c-#c72 or 7ii7 7,i7 is n cle>$ "u section #b7;h7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;h77 or section #c;,c ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c-#c72 & 7,,ii7 ) respect to :i* ! t]m9ation ( ! quantity held by a hypo!tical bank hold+ company1 )9 ! timeframe p]mitt$ "u ! bankruptcy laws 9 effect on ! date ! analysis is und]tak51 c\ld cause a negative impact1 includ+ a negative impact on-- 7aa7 ! price ( ! collat]al2 7bb7 ! t]m9ation value ( ! qualifi$ f9ancial contract2 or 7cc7 ! availability ( liquidity to ! bank hold+ company or a c\nt]p>ty2 7#d7 9 conduct+ ! analysis requir$ "u p>agraphs 7#a71 7#b71 & 7#c71 consid] ! impact on & ( ! qualifi$ f9ancial products describ$ 9 p>agraph 7#c71 sep>ately assum+ t ea* category ( qualifi$ f9ancial contract describ$ 9 p>agraph 7#c7 t may be t]m9at$ is t]m9at$-- 7,a7 imm$iately ^u ! fil+ ( a bankruptcy petition2 7,b7 #ad days aft] ! fil+ ( a bankruptcy petition2 7,c7 #cj days aft] ! fil+ ( a bankruptcy petition2 7,d7 #ahj days aft] ! fil+ ( a bankruptcy petition2 & 7,e7 on ! e>li] (-- 7i7 ! date on :i* ea* qualifi$ f9ancial contract matures "u its applicable non-default t]ms1 assum+ t ! range ( maturity dates is typical ( ! qualifi$ f9ancial contracts held by ! hypo!tical bank hold+ company2 & 7ii7 ! date on :i* ! nondebtor c\nt]p>ty is no long] adequately protect$1 assum+ t adequate protection means cont9u$ receipt ( v>iation m>g91 z provid$ = by contract1 & t ! ability ( ! hypo!tical bank hold+ company to provide su* adequate protection is correlat$ )-- 7,i7 ! initial m>g9 & v>iation m>g9 t su* hypo!tical bank hold+ company & its c\nt]p>ty are likely to negotiate if ! ,bankruptcy ,code is-- 7aa7 z 9 effect on ! date ( enactm5t ( ?is ,act2 & 7bb7 am5d$ to elim9ate ! "r to t]m9ate all qualifi$ f9ancial contracts imm$iately ^u ! petition date2 & 7,,ii7 ! quantity ( debtor 9 possession f9anc+ t ! hypo!tical bank hold+ company is likely to be able to attract1 z det]m9$ by ! /udy conduct$ "u subsection 7d72 & 7#e7 bas$ on ! analyses p]=m$ "u p>agraphs 7#a7 ?r\gh 7#d7-- 7,a7 analyze h[ f9ancial companies & _! cu/om]s1 inve/ors1 & c\nt]p>ties c\ld adju/ _! bus9ess practices if ! safe h>bors 7 no long] available to c\nt]p>ties2 7,b7 recomm5d any *anges to ! treatm5t ( qualifi$ f9ancial contracts & ma/] nett+ agreem5ts by ! ,bankruptcy ,code1 z 9 effect on ! date ! analysis is und]tak51 t w\ld-- 7i7 prev5t pot5tial risks to f9ancial /ability 9 ! ,unit$ ,/ates2 & 7ii7 help-- 7,i7 pres]ve value = di/ribution to cr$itors2 7,,ii7 prev5t fluctuations 9 asset prices2 & 7,,iii7 c\nt]p>ties receive ! b5efit ( ! non-default t]ms ( _! qualifi$ f9ancial contracts2 & 7,c7 recomm5d any o!r legislative or regulatory *anges t c\ld help address any legislative or regulatory gaps1 vuln]abilities1 or sugge/ions id5tifi$ by ! analysis4 7c7 ,bridge company /udy ,! /udy describ$ 9 ?is subsection %all analyze ! impact ( ! propos$ sub*apt] on sy/emic risk1 moral haz>d1 ! availability ( liquidity1 ! ability to reorganize successfully & re/ore pr(itability1 & ! ability to hold acc\ntable ! p]sons responsible = ! failure ( a f9ancial company1 ) consid]ation giv5 to-- 7#a7 ! effects ( sev]ely limit+1 by /atute1 ! ability to hold ! bo>d ( directors ( a f9ancial company acc\ntable = actions relat+ to its failure & bankruptcy fil+2 7#b7 ! risks t may imp$e successful capitalization & f9anc+ ( ! bridge company "u ! propos$ sub*apt] & ! likelihood t su* risks w prev5t su* capitalization & f9anc+ )9 #dh h\rs ( ! comm5cem5t ( a bankruptcy2 7#c7 ! pot5tial impact on f9ancial /ability 9 ! ,unit$ ,/ates if a bankruptcy is comm5c$ & capitalization & f9anc+ ( ! bridge company _c be successfully complet$ )9 #dh h\rs2 7#d7 ! ext5t to :i*1 if capitalization & f9anc+ ( ! bridge company "u ! propos$ sub*apt] does n succe$ )9 #dh h\rs-- 7,a7 !re is a means1 "u ! propos$ sub*apt]1 to prev5t risk to f9ancial /ability 9 ! ,unit$ ,/ates2 & 7,b7 !re w\ld be a means1 "u ! propos$ sub*apt] ) title ,,ii repeal$1 to prev5t risk to f9ancial /ability 9 ! ,unit$ ,/ates2 7#e7 :e!r requir+ ! bridge company to assume all obligations "u ! qualifi$ f9ancial contracts ( ! f9ancial company1 & requir+ ! bridge company to assume ! obligation to pay 9 full a secur$ claim :]e ! value ( ! collat]al is less ?an ! claim1 may-- 7,a7 leave ! bridge company ) inadequate regulatory capital2 or 7,b7 create a risk t ! bridge company w\ld be unable to secure adequate capital & liquidity dur+ ! timeframe & 9 ! quantity 9 :i* su* capital & liquidity are ne$$ to pay-- 7i7 ! obligations assum$2 7ii7 ! op]at+ exp5ses ( ! bridge company2 7iii7 ! fees & exp5ses ( ! special tru/ee2 & 7iv7 ! debt s]vice on ! new f9anc+2 7#f7 :e!r ! transf] to ! bridge company ( a mat]ial "p ( ! assets ( ! debtor1 ) less ?an #dh h\rs ( notice giv5 to a limit$ numb] ( ! cr$itors ( ! debtor & p>ties 9 int]e/1 & ) no notice giv5 to o!r cr$itors & p>ties 9 int]e/1 may-- 7,a7 violate ! due process rights ( "s ( ^? cr$itors or p>ties 9 int]e/2 or 7,b7 expose ! bridge company to pot5tial liability due to ! lack ( adequate notice to su* cr$itors or p>ties 9 int]e/2 7#g7 :e!r1 if !re is a violation ( due process rights or ! pot5tial = successor liability1 z describ$ 9 p>agraph 7#f71 !re is a risk t ! re/ructur+ may n be accompli%$ )9 #dh h\rs2 7#h7 :e!r-- 7,a7 9 light ( ! failure ( ! pr$ecessor ( ! bridge company & ! possibility ( ongo+ issues 9 ! op]at+ entities transf]r$ to ! bridge company1 !re is a risk t f9ancial m>kets may consid] ! bridge company unattractive z a pot5tial borr[] or inve/m5t opportunity2 & 7,b7 ! bankruptcy fil+1 9 ! abs5ce ( c]ta9ty ( adequate f9ancial support to ensure a positive outcome1 c\ld disrupt f9ancial m>kets2 7#i7 :e!r ! rights ( all cr$itors ^: claims are n assum$ by ! bridge company1 includ+ ! claims ( employees1 suppli]s1 s]vice provid]s1 & fraud claimants ( ! f9ancial company1 w be adequately repres5t$ 9 ! abs5ce (-- 7,a7 a secure s\rce ( funds to pay = ! fees & exp5ses ( c\nsel to a cr$itors' committee appo9t$ "u section #aajb ( ! ,bankruptcy ,code2 & 7,b7 bankruptcy c\rt jurisdiction & sup]vision ov] ! bridge company & ! special tru/ee's managem5t ( ! assets transf]r$ to ! bridge company2 7#aj7 :e!r1 "u ! propos$ sub*apt]1 #dh h\rs is a suffici5t am\nt ( "t to all[-- 7,a7 a tru/ee ( a f9ancial company 9 bankruptcy to-- 7i7 assess-- 7,i7 ! future liquidity ne$s ( ! bridge company2 & 7,,ii7 ! ability ( ! bridge company to access suffici5t liquidity to meet su* ne$s2 7ii7 make in=m$ decisions ab\t-- 7,i7 :i* qualifi$ f9ancial contract portfolios ! bridge company c reasonably expect to p]=m if ! tru/ee's only *oice is to assume or reject ! qualifi$ f9ancial contracts ( a giv5 c\nt]p>ty on an all or no?+ basis2 7,,ii7 ! pot5tial consequ5ces ( reject+ ! qualifi$ f9ancial contracts ( a giv5 c\nt]p>ty on f9ancial /ability 9 ! ,unit$ ,/ates if ! tru/ee's only *oice is to assume or reject ! qualifi$ f9ancial contracts ( a giv5 c\nt]p>ty on an all or no?+ basis2 7,,iii7 :i* encumb]$ assets may be transf]r$ to ! bridge company )\t trigg]+ an obligation to pay an und]secur$ claim t is too l>ge = ! bridge company reali/ically to pay2 & 7,,iv7 :i* qualifi$ f9ancial contracts may be assum$ )\t trigg]+ an obligation to pay an unsecur$ claim ow$ to ! c\nt]p>ty t is too l>ge = ! bridge company reali/ically to pay2 & 7iii7 assemble & fairly pres5t evid5ce support+ ! decisions describ$ 9 clauses 7i7 & 7ii7 to ! bankruptcy judge & o!r p>ties 9 int]e/2 & 7,b7 a bankruptcy judge to he> & consid] suffici5t evid5ce to make an in=m$ decision ) respect to :e!r ! actions propos$ 9 clauses 7i7 & 7ii7 ( subp>agraph 7,a7-- 7i7 are 9 ! be/ int]e/s ( cr$itors2 & 7ii7 w n pose risks to f9ancial /ability 9 ! ,unit$ ,/ates2 7#aa7 if !re is a risk t ! bridge company capitalization w n be accompli%$ successfully )9 #dh h\rs1 ! likely m>ket & legal consequ5ces1 includ+-- 7,a7 :e!r mass t]m9ation ( ! qualifi$ f9ancial contracts c\ld be avoid$2 7,b7 :e!r an ext5d$ p]iod ( f9ancial m>ket disruption is possible2 7,c7 :at /eps w\ld be ne$$ to conta9 ! pot5tial fall\t f ! ev5ts describ$ 9 subp>agraphs 7,a7 & 7,b72 & 7,d7 :at legal au?ority exi/s to take ! /eps t w\ld be ne$$ to conta9 ! fall\t describ$ 9 subp>agraph 7,c72 7#ab7 ) respect to ! propos$ sub*apt] ) title ,,ii repeal$-- 7,a7 :e!r repeal+ title ,,ii is an effective way to prev5t sy/emic risk & moral haz>d2 7,b7 :e!r !re w\ld be an increas$ likelihood ( taxpay] bail\ts 9 ! abs5ce ( title ,,ii2 & 7,c7 ! effects ( los+ title ,,ii z a la/ resort if-- 7i7 ! f9ancial company is unable to resolve itself "u *apt] #aa ( ! ,bankruptcy ,code2 or 7ii7 ! bridge company is unable to repay all ( ! obligations assum$ by ! bridge company "u ! propos$ sub*apt]2 & 7#ac7 any o!r mat]ial issues ) respect to ! bridge company t may pose a ?reat to-- 7,a7 f9ancial /ability 9 ! ,unit$ ,/ates2 or 7,b7 ! laws1 proc$ures1 or regulations e/abli%$ to prev5t or mitigate risks to f9ancial /ability 9 ! ,unit$ ,/ates4 7d7 ,f9anc+ & liquidity /udy 7#a7 ,9 g5]al ,! /udy describ$ 9 ?is subsection %all report on-- 7,a7 ! am\nt ( liquidity ne$$ by a hypo!tical bank hold+ company 9 bankruptcy1 ! availability ( private f9anc+ to fulfill t ne$1 & ! likelihood ( attract+ t f9anc+2 & 7,b7 :e!r am5d+ ! ,bankruptcy ,code to p]mit pre-arrang+ a debtor 9 possession f9anc+ facility = a f9ancial company1 p>ticul>ly a hypo!tical bank hold+ company1 t is en=ceable aft] ! fil+ ( a bankruptcy petition1 w\ld-- 7i7 increase ! level ( c]ta9ty t ! private f9anc+ describ$ 9 subp>agraph 7,a7 w\ld be available :5 ne$$2 7ii7 pose risks to l5d]s ( ! private f9anc+ describ$ 9 subp>agraph 7,a7 t c\ld n be mitigat$ 9 advance by-- 7,i7 assess+ ! cr$it risk pos$ by ! f9ancial company2 7,,ii7 tak+ & p]fect+ a security int]e/ 9 collat]al own$ by ! f9ancial company2 7,,iii7 limit+ ! size ( a l5d]'s exposure to a p>ticul> f9ancial company2 or 7,,iv7 tak+ any o!r /eps simil> to ^? describ$ 9 subclauses 7,i7 ?r\gh 7,,iii72 7iii7 pose risks to f9ancial /ability 9 ! ,unit$ ,/ates2 or 7iv7 h o!r effects4 7#b7 ,consid]ations ,9 conduct+ ! /udy requir$ "u p>agraph 7#a71 ! ,(fice %all-- 7,a7 project ! am\nt ( f9anc+ t ! tru/ee w\ld ne$ dur+ ! #b-ye> p]iod imm$iately foll[+ ! petition date ( a hypo!tical bank hold+ company-- 7i7 ) an op]at+ company t has suff]$ an unexpect$ loss ( #aj1jjj1jjj1jjj "o week be=e ! petition date due to fraud & a lack ( int]nal controls2 & 7ii7 t1 imm$iately be=e ! loss describ$ 9 clause 7i71 _h exactly ! m9imum am\nt ( regulatory capital & liquidity requir$2 7,b7 conduct a m>ket survey (1 &1 if necess>y1 use analytical te*niques to det]m9e1 ! pot5tial s\rces ( private f9anc+ to cov] ! project$ %ortfall1 if any1 "u ea* set ( conditions e/abli%$ by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em "u section #afe7;i77#a77;,b77i7 ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecfe7;i77#a77;,b77i77 t is 9 effect on ! date ! survey is conduct$2 7,c7 bas$ on ! m>ket survey conduct$ &1 if applicable1 ! analytical te*niques us$ "u subp>agraph 7,b71 describe ! am\nt ( private f9anc+ t is likely to be available to ! hypo!tical bank hold+ company & ! t]ms & conditions "u :i* x is likely to be available2 7,d7 describe ! timel9e & logi/ics = obta9+ ! private f9anc+ describ$ 9 subp>agraph 7,c71 assum+ t ! ne$ = su* f9anc+ became app>5t at ! "t ( ! loss describ$ 9 subp>agraph 7,a77i72 7,e7 assess-- 7i7 ! likelihood t ! tru/ee w be successful 9 obta9+ ! am\nt ( private f9anc+ ne$$1 on t]ms t a hypo!tical bank hold+ company c af=d & )9 ! timeframe 9 :i* su* f9anc+ is ne$$-- 7,i7 "u ! circum/ances describ$ 9 subp>agraph 7,a72 & 7,,ii7 9 light ( ! results ( ! m>ket survey & analytical te*niques describ$ 9 subp>agraph 7,b72 & 7ii7 ! pot5tial risks t c\ld prev5t ! tru/ee f obta9+ ! f9anc+ describ$ 9 clause 7i72 & 7,f7 assess :e!r a bridge company ) ! ability to pre-arrange private f9anc+1 z describ$ 9 p>agraph 7#a77;,b71 w\ld be able to obta9 an adequate am\nt ( f9anc+ m easily ?an a f9ancial company t is a debtor "u ! provisions ( *apt] #aa ( ! ,bankruptcy ,code t are 9 effect on ! date ! analysis is und]tak54 7#c7 ,recomm5dations ,! /udy describ$ 9 ?is subsection %all conta9 recomm5dations reg>d+ any legislative or regulatory *anges t are necess>y or w\ld be helpful to address any gaps1 vuln]abilities1 or sugge/ions id5tifi$ 9 ! /udy4 7e7 ,ma/] nett+ agreem5t /udy 7#a7 ,9 g5]al ,! /udy describ$ 9 ?is subsection %all analyze & report on :e!r1 consid]+ ! size & complexity ( ! ma/] nett+ agreem5ts ( a hypo!tical bank hold+ company-- 7,a7 ! laws 9 effect on ! date ( enactm5t ( ?is ,act ) respect to assumption & assignm5t ( qualifi$ f9ancial contracts & ma/] nett+ agreem5ts c\ld pose risks to f9ancial /ability 9 ! ,unit$ ,/ates2 7,b7 any risks describ$ 9 subp>agraph 7,a7 c\ld be avoid$ or mitigat$ by *anges 9 ! law t w\ld-- 7i7 7,i7 require ma/] nett+ agreem5ts to be m limit$ 9 size & scope2 & 7,,ii7 p]mit ma/] nett+ agreem5ts to be assign$ to sep>ate assignees2 7ii7 7,i7 all[ ma/] nett+ agreem5ts to rema9 z configur$ on ! date ( enactm5t ( ?is ,act1 z long z a f9ancial company is n 9 bankruptcy2 & 7,,ii7 foll[+ a bankruptcy petition1 if no qualifi$ assignee 7 able to assume all obligations "u a ma/] nett+ agreem5t1 or if su* an assignm5t w\ld pose sy/emic risk1 all[ ! tru/ee to-- 7aa7 divide qualifi$ f9ancial contracts t are "u a s+le ma/] nett+ agreem5t into gr\ps bas$ on product type & level ( risk2 & 7bb7 assign ! qualifi$ f9ancial contracts t h be5 divid$ z describ$ 9 item 7aa7 to sep>ate assignees2 or 7iii7 p]mit or require o!r actions2 & 7,c7 !re is an alt]native means ( assum+ & assign+1 or w9d+ d[n1 ! qualifi$ f9ancial contracts & ma/] nett+ agreem5ts ( ! hypo!tical bank hold+ company )\t pos+ risks to f9ancial /ability 9 ! ,unit$ ,/ates4 7#b7 ,consid]ations ,9 conduct+ ! /udy requir$ "u p>agraph 7#a71 ! ,(fice %all sep>ately model & quantify ! pot5tial direct & indirect economic consequ5ces1 includ+ ! consequ5ces describ$ 9 subp>agraphs 7,b71 7,c71 & 7,g7 ( section #bjc7;a77#b7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echc7;a77#b771 ( ! disposition ( ! ma/] nett+ agreem5ts typical ( ^? ( a hypo!tical bank hold+ company "u ea* ( ! #e sc5>ios describ$ 9 p>agraph 7#c74 7#c7 ,sc5>ios ,! #e sc5>ios describ$ 9 ?is subp>agraph are z foll[s3 7,a7 ,! ,bankruptcy ,code1 z 9 effect on ! date ( enactm5t ( ?is ,act1 rema9s 9 effect & ! c\rse ( deal+ among bank hold+ companies is simil> to t commonly 9 practice on ,decemb] #ca1 #bjaf1 includ+ ! foll[+ conditions3 7i7 ,! tru/ee or receiv] = a hypo!tical bank hold+ company may n assume1 or assume & assign1 ! qualifi$ f9ancial contracts or ma/] nett+ agreem5ts ( ! hypo!tical bank hold+ company to a ?ird p>ty because ^? contracts are consid]$ f9ancial accommodations "u section #cfe7;c77#b7 ( ! ,bankruptcy ,code4 7ii7 ,because ( ! safe h>bors1 c\nt]p>ties may1 imm$iately ^u ! fil+ ( ! petition-- 7,i7 liquidate1 t]m9ate1 & accel]ate qualifi$ f9ancial contracts & ma/] nett+ agreem5ts2 & 7,,ii7 retrieve _! collat]al4 7,b7 ,! facts are z provid$ 9 subp>agraph 7,a71 except t-- 7i7 ! ,bankruptcy ,code has be5 am5d$ to all[ = ! assumption1 b n ! assignm5t1 ( qualifi$ f9ancial contracts & ma/] nett+ agreem5ts by a hypo!tical bank hold+ company2 7ii7 ! *oice ( ! hypo!tical bank hold+ company is limit$ to assum+-- 7,i7 all ( ! qualifi$ f9ancial contracts & ma/] nett+ agreem5ts betwe5 ! debtor & a p>ticul> c\nt]p>ty2 or 7,,ii7 none ( ! qualifi$ f9ancial contracts or ma/] nett+ agreem5ts betwe5 ! debtor & ! c\nt]p>ty describ$ 9 subclause 7,i72 & 7iii7 ! hypo!tical bank hold+ company assumes all ( ! qualifi$ f9ancial contracts & ma/] nett+ agreem5ts )\t conduct+ an analysis ( its future ca% fl[4 7,c7 ,! facts are z provid$ 9 subp>agraph 7,b71 except t-- 7i7 ! hypo!tical bank hold+ company has suffici5t liquidity to p]=m ! obligations "u only #b ( ! #e ma/] nett+ agreem5ts ) ! l>ge/ c\nt]p>ties ( ! hypo!tical bank hold+ company2 & 7ii7 any rema9+ ma/] nett+ agreem5ts w\ld be t]m9at$ imm$iately4 7,d7 ,! facts are z provid$ 9 subp>agraph 7,b71 except t-- 7i7 ! ,bankruptcy ,code has be5 am5d$ to all[ ! tru/ee or receiv] = a hypo!tical bank hold+ company to sep>ately assign #a or m ( its ma/] nett+ agreem5ts to #a or m ?ird p>ties t h ! ability to p]=m su* ma/] nett+ agreem5ts2 & 7ii7 ! numb] ( ?ird p>ties t w\ld h ! ability to p]=m1 & be likely assignees (1 ! ma/] nett+ agreem5t ) #a ( ! #e l>ge/ c\nt]p>ties ( ! hypo!tical bank hold+ company1 bas$ on gross notional am\nt z ( ,decemb] #ca1 #bjaf1 is simil> to ! numb] ( p>ties t w\ld h ! ability to p]=m & w\ld be int]e/$ 9 assum+ su* ma/] nett+ agreem5ts "u ea* set ( economic conditions e/abli%$ by ! ,bo>d "u section #afe7;i77#a77;,b77i7 ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecfe7;i77#a77;,b77i77 t is 9 effect on ! date ! /udy is conduct$4 7,e7 ,! facts are z provid$ 9 subp>agraph 7,b71 except t-- 7i7 ! ,bankruptcy ,code has be5 am5d$ to all[ ! tru/ee = a hypo!tical bank hold+ company to divide ! qualifi$ f9ancial contracts "u ea* ma/] nett+ agreem5t into sev]al small] gr\ps1 ea* ( :i*-- 7,i7 conta9s #a product class &1 )9 t product class1 #a risk level2 & 7,,ii7 may be sep>ately-- 7aa7 assum$2 7bb7 assum$ & assign$2 or 7cc7 reject$2 & 7ii7 ! pot5tial assignees are simil> to ! p>ties t w\ld h ! ability to p]=m1 & w\ld be likely int]e/$ pur*as]s1 ( su* gr\p "u ea* set ( economic conditions e/abli%$ by ! ,bo>d "u section #afe7;i77#a77;,b77i7 ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecfe7;i77#a77;,b77i77 t is 9 effect on ! date ! /udy is conduct$4 7#d7 ,factors ,9 conduct+ ! /udy requir$ "u ?is subsection1 ! ,(fice %all analyze factors t include-- 7,a7 ! data ne$$ to det]m9e :e!r ! qualifi$ f9ancial contracts "u ea* ma/] nett+ agreem5t are 9 ! money or out ( ! money1 includ+-- 7i7 ! contractual t]ms ( ! ma/] nett+ agreem5ts & qualifi$ f9ancial contracts ( ! debtor2 7ii7 curr5t m>ket pric+1 int]e/ rates1 =eign ex*ange rates1 & simil> data2 7iii7 data on pot5tial future m>ket tr5ds dur+ ! rema9+ t]m ( ! qualifi$ f9ancial contracts1 tak+ into consid]ation pot5tial %ort t]m m>ket disruptions z a consequ5ce ( ! conditions t l$ to ! fil+ ( a bankruptcy petition by ! hypo!tical bank hold+ company2 7iv7 ! exi/5ce1 location1 & =mat ( ! data describ$ 9 clause 7iii72 & 7v7 ! legal au?ority ( ! tru/ee to access ! data describ$ 9 clause 7iii72 7,b7 ! data ne$$ to det]m9e :e!r ! qualifi$ f9ancial contracts "u ea* ma/] nett+ agreem5t w be valuable to ! reorganiz$ debtor1 includ+-- 7i7 ! propos$ future bus9ess configuration1 capitalization1 borr[+ capacity1 & ca% fl[ projections ( ! hypo!tical bank hold+ company :5 x becomes a reorganiz$ debtor2 & 7ii7 ! ability ( ! tru/ee to s]vice ! qualifi$ f9ancial contracts & ma/] nett+ agreem5ts until ! debtor is reorganiz$2 7,c7 ! exi/5ce ( sy/ems ar*itecture & programs to analyze ! data describ$ 9 subp>agraphs 7,a7 & 7,b7 79 ?is p>agraph ref]r$ to z ! sy/ems & programs7 9 ord] to draw ! conclusions necess>y to ex]cise bus9ess judgm5t2 7,d7 ! capacity ( ! sy/ems & programs to process ! data describ$ 9 subp>agraphs 7,a7 & 7,b72 7,e7 ! legal au?ority ( ! tru/ee to access ! sy/ems & programs2 7,f7 ! pr(essional skills & quantity ( p]sonnel ne$$ to run ! sy/ems & programs & draw conclusions f ! data describ$ 9 subp>agraphs 7,a7 & 7,b71 includ+ ! availability ( su* p]sonnel2 & 7,g7 ! am\nt ( "t ne$$ =-- 7i7 ga!r+ or develop+ ! data describ$ 9 subp>agraphs 7,a7 & 7,b72 7ii7 id5tify+ & reta9+ ! p]sonnel ne$$ to run ! sy/ems & programs2 7iii7 te/+ & runn+ ! sy/ems & programs2 7iv7 assembl+ ! results ( ! data analysis2 7v7 develop+ conclusions & recomm5dations bas$ on ! results describ$ 9 clause 7iv72 7vi7 pres5t+ & expla9+ ! conclusions & recomm5dations describ$ 9 clause 7v7 to ! tru/ee2 7vii7 det]m9+ :e!r assumption1 assumption & assignm5t1 or rejection ( ! qualifi$ f9ancial contracts & ma/] nett+ agreem5ts describ$ 9 subp>agraph 7,a7-- 7,i7 is consi/5t ) ! bus9ess judgm5t rule2 & 7,,ii7 ev5 if consi/5t ) ! bus9ess judgm5t rule1 c\ld impact f9ancial /ability 9 ! ,unit$ ,/ates2 7viii7 provid+ notice to cr$itors articulat+ h[ ! tru/ee's det]m9ation "u clause 7vii7 is consi/5t ) ! bus9ess judgm5t rule2 & 7ix7 all[+ cr$itors a reasonable opportunity to review & object to ! propos$ c\rse ( action ( ! tru/ee4 7#e7 ,assumptions ,9 conduct+ ! /udy requir$ "u ?is subsection1 ! ,(fice %all assume t-- 7,a7 except z o!rwise expressly provid$1 ! laws 9 effect on ! date ( enactm5t ( ?is ,act rema9 9 effect2 7,b7 ! qualifi$ f9ancial contract & ma/] nett+ agreem5t configurations t are typical 9 ! m>ket on ,decemb] #ca1 #bjaf1 rema9 9 effect2 & 7,c7 ! project$ availability ( f9anc+ & liquidity to p]=m ! ma/] nett+ agreem5ts describ$ 9 subp>agraph 7,b7 is consi/5t ) ! am\nt det]m9$ to be available "u subsection 7d77#b77;,c74 7#f7 ,recomm5dations ,! /udy describ$ 9 ?is subsection %all conta9 recomm5dations reg>d+ any legislative or regulatory *anges t c\ld help address any gaps or vuln]abilities id5tifi$ 9 ! /udy4