### Question
What is the definition of walkaway clause?


### Answer
The definition of **walkaway clause** is as follows in *12 U.S.C. § 5390*:

> any provision in a qualified financial contract that suspends, conditions, or extinguishes a payment obligation of a party, in whole or in part, or does not create a payment obligation of a party that would otherwise exist, solely because of the status of such party as a nondefaulting party in connection with the insolvency of a covered financial company that is a party to the contract or the appointment of or the exercise of rights or powers by the Corporation as receiver for such covered financial company, and not as a result of the exercise by a party of any right to offset, setoff, or net obligations that exist under the contract, any other contract between those parties, or applicable law

#### Citation:
  - *12 U.S.C. § 5390*
  - Heading: **CHAPTER 53-WALL STREET REFORM AND CONSUMER PROTECTION > SUBCHAPTER II-ORDERLY LIQUIDATION AUTHORITY**

