83,240
edits
Eligible Contract Participant: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) m (Text replace - ""," to "”,") |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 9: | Line 9: | ||
==Enforceability: the “ECP Rep"== | ==Enforceability: the “ECP Rep"== | ||
Under the [[Commodity Futures Modernization Act of 2000]], a commodity contract entered between Eligible Contract Participant or persons reasonably believed to be ECPs will be deemed enforceable. Therefore a representation to that effect in a commodity contract is advisable. the following text is recommended by [[Sullivan & Cromwell]]: | Under the [[Commodity Futures Modernization Act of 2000]], a commodity contract entered between Eligible Contract Participant or persons reasonably believed to be ECPs will be deemed enforceable. Therefore a representation to that effect in a commodity contract is advisable. the following text is recommended by [[Sullivan & Cromwell]]: | ||
:Each Party represents and warrants to the other Party that: | |||
:(1) it is an “eligible contract participant” as such term is defined in the [[Commodity Exchange Act]], as amended | |||
:7 U.S.C. § 1 (a) (12); [and | |||
:(2) it is an “[[eligible commercial entity]]” as such term is defined in the [[Commodity Exchange Act]], as amended | |||
:7 U.S.C. § 1 (a) (11).] | |||
(Note that the second limb here isn't strictly necessary for the ECP rep; this is indeed the “ECE rep”, about which you can read to your heart's content [[eligible commercial entity|here]].) | (Note that the second limb here isn't strictly necessary for the ECP rep; this is indeed the “ECE rep”, about which you can read to your heart's content [[eligible commercial entity|here]].) | ||