
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC27f]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 1--COMMODITY EXCHANGES
 
Sec. 27f. Contract enforcement


(a) Hybrid instruments

    No hybrid instrument 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, a hybrid instrument under any 
provision of Federal or State law, based solely on the failure of the 
hybrid instrument to satisfy the predominance test set forth in section 
27c(b) of this title or to comply with the terms or conditions of an 
exemption or exclusion from any provision of the Commodity Exchange Act 
[7 U.S.C. 1 et seq.] or any regulation of the Commodity Futures Trading 
Commission.

(b) Covered swap agreements

    No covered swap agreement shall be void, voidable, or unenforceable, 
and no party to a covered swap agreement shall be entitled to rescind, 
or recover any payment made with respect to, a covered swap agreement 
under any provision of Federal or State law, based solely on the failure 
of the covered swap agreement to comply with the terms or conditions of 
an exemption or exclusion from any provision of the Commodity Exchange 
Act [7 U.S.C. 1 et seq.] or any regulation of the Commodity Futures 
Trading Commission.

(c) Preemption

    Sections 27 to 27f of this title shall supersede and preempt the 
application of any State or local law that prohibits or regulates gaming 
or the operation of bucket shops (other than antifraud provisions of 
general applicability) in the case of--
        (1) a hybrid instrument that is predominantly a banking product; 
    or
        (2) a covered swap agreement.

(Pub. L. 106-554, Sec. 1(a)(5) [title IV, Sec. 408], Dec. 21, 2000, 114 
Stat. 2763, 2763A-461.)

                       References in Text

    The Commodity Exchange Act, referred to in subsecs. (a) and (b), is 
act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is 
classified generally to this chapter. For complete classification of 
this Act to the Code, see section 1 of this title and Tables.

                          Codification

    Section was enacted as part of the Legal Certainty for Bank Products 
Act of 2000, and also as part of the Commodity Futures Modernization Act 
of 2000, and not as part of the Commodity Exchange Act which comprises 
this chapter.

                  Section Referred to in Other Sections

    This section is referred to in sections 1a, 2, 7a-1, 16, 27, 27d of 
this title; title 15 section 78c.
