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.


12 USC § 4402(8)

Scoping language

For purposes of this subchapter
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