### Question
How does the law define covered swap agreement?


### Answer
Under *7 U.S.C. § 27*, **covered swap agreement** is defined as:

> a swap agreement (as defined in section 206(b) of the Gramm-Leach-Bliley Act), including a credit or equity swap, based on a commodity other than an agricultural commodity enumerated in section 1a(4) of this title if—


(1) the swap agreement—


(A) is entered into only between persons that are eligible contract participants (as defined in section 1a(12) of this title, as in effect on December 21, 2000) at the time the persons enter into the swap agreement

#### Citation:
  - *7 U.S.C. § 27*
  - Heading: **CHAPTER 1-COMMODITY EXCHANGES**

