### Question
How is the "walkaway clause" defined?


### Answer
The term **walkaway clause** is defined in *12 U.S.C. § 1821* as follows -

> a provision in a qualified financial contract that, after calculation of a value of a party's position or an amount due to or from 1 of the parties in accordance with its terms upon termination, liquidation, or acceleration of the qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of such party's status as a nondefaulting party

#### Citation:
  - *12 U.S.C. § 1821*
  - Heading: **CHAPTER 16-FEDERAL DEPOSIT INSURANCE CORPORATION**

