7 U.S.C. § 27c — Exclusion of certain other identified banking products

(a) In general No part of the Commodity Exchange Act applies to a banking product, and the CFTC may not exercise regulatory authority over it, if the product is a hybrid instrument that is predominantly (mainly) a banking product under the test set out in subsection (b). (b) Predominance test A hybrid instrument is considered predominantly a banking product if all four of these are true: (1) the issuer receives full payment of the purchase price at substantially the same time it delivers the instrument; (2) the purchaser or holder is not required, under the instrument's terms or any related arrangement, to make any payment to the issuer beyond that purchase price — no margin, settlement payment, or otherwise, during the instrument's life or at maturity; (3) the issuer is not subject, by the instrument's terms, to mark-to-market margining requirements; and (4) the instrument is not marketed as a contract of sale of a commodity for future delivery (or an option on such a contract) subject to the Commodity Exchange Act. (c) Mark-to-market margining requirement For purposes of subsection (b)(3), "mark-to-market margining requirements" does not include an issuer's obligation to increase the collateral pledged for a secured debt instrument, in order to secure the issuer's repayment obligations to the purchaser.