Eligible Commercial Entity Law and Legal Definition
“The term "eligible commercial entity" means, with respect to an agreement, contract or transaction in a commodity--
(A)”an eligible contract participant described in clause (i), (ii), (v), (vii), (viii), or (ix) of paragraph (12)(A) that, in connection with its business--
(i) has a demonstrable ability, directly or through separate contractual arrangements, to make or take delivery of the underlying commodity;
(ii) incurs risks, in addition to price risk, related to the commodity; or
(iii) is a dealer that regularly provides risk management or hedging services to, or engages in market-making activities with, the foregoing entities involving transactions to purchase or sell the commodity or derivative agreements, contracts, or transactions in the commodity;
(B) an eligible contract participant, other than a natural person or an instrumentality, department, or agency of a State or local governmental entity, that--
(i) regularly enters into transactions to purchase or sell the commodity or derivative agreements, contracts, or transactions in the commodity; and
(ii) either--
(I) in the case of a collective investment vehicle whose participants include persons other than--
(aa) qualified eligible persons, as defined in Commission rule 4.7(a) (17 CFR 4.7(a));
(bb) accredited investors, as defined in Regulation D of the Securities and Exchange Commission under the Securities Act of 1933 (17 CFR 230.501(a)), with total assets of $ 2,000,000; or
(cc) qualified purchasers, as defined in section 2(a)(51)(A) of the Investment Company Act of 1940 [15 USCS § 80a-2(a)(51)(A)];
in each case as in effect on the date of the enactment of the Commodity Futures Modernization Act of 2000 [enacted Dec. 21, 2000], has, or is one of a group of vehicles under common control or management having in the aggregate, $ 1,000,000,000 in total assets; or
(II) in the case of other persons, has, or is one of a group of persons under common control or management having in the aggregate, $ 100,000,000 in total assets; or
(C) such other persons as the Commission shall determine appropriate and shall designate by rule, regulation, or order.” (7 USCS § 1a)
Legal Definition list
- Eligible Cellulosic Biofuels Production Facility
- Eligible Book-Entry Sallie Mae Security
- Eligible Biofuels Producer
- Eligible Adverse Weather [Agriculture]
- Eligibility Period of Federal Labor Relations
- Eligible Commercial Entity
- Eligible Contract Participant
- Eligible Depository Institution
- Eligible Educational Institution
- Eligible Employee
- Eligible Energy Program
