### Question
How does the law define walkaway clause?


### Answer
Under *12 U.S.C. § 4617*, **walkaway clause** is defined as:

> 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 the status of such party as a nondefaulting party

#### Citation:
  - *12 U.S.C. § 4617*
  - Heading: **CHAPTER 46-GOVERNMENT SPONSORED ENTERPRISES > SUBCHAPTER II-REQUIRED CAPITAL LEVELS FOR REGULATED ENTITIES, SPECIAL ENFORCEMENT POWERS, AND REVIEWS OF ASSETS AND LIABILITIES**

