Covered Contractual Payment Entitlement Law and Legal Definition

According to 12 USCS § 4402 (4), the term covered contractual payment entitlement means--

“ (A) an entitlement of a financial institution to receive a payment, subject to a netting contract from another financial institution; and

(B) an entitlement of a member of a clearing organization to receive payment, subject to a netting contract, from another member of a clearing organization of a covered clearing obligation.”