### Question
Can you define what clearing bank means?


### Answer
**Clearing bank** is defined as the following in *11 U.S.C. § 781*:

> an uninsured State member bank, or a corporation organized under section 25A of the Federal Reserve Act, which operates, or operates as, a multilateral clearing organization pursuant to section 409 [1](#781_1_target) of the Federal Deposit Insurance Corporation Improvement Act of 1991

#### Citation:
  - *11 U.S.C. § 781*
  - Heading: **CHAPTER 7-LIQUIDATION > SUBCHAPTER V-CLEARING BANK LIQUIDATION**

