failed member

(8) Failed member The term “failed member” means any member that— (A) fails to satisfy a covered clearing obligation when due, (B) has commenced or had commenced against it insolvency, liquidation, reorganization, receivership (including the appointment of a receiver), conservatorship, or similar proceedings, or (C) has generally ceased to meet its obligations when due.

Source

12 USC § 4402(8)


Scoping language

For purposes of this subchapter
Is this correct? or