### Question
How is the term net entitlement defined?


### Answer
The term **net entitlement** is defined in *12 U.S.C. § 4402* as the following:

> the amount by which the covered contractual payment entitlements of a financial institution or member exceed the covered contractual payment obligations of the institution or member after netting under a netting contract

#### Citation:
  - *12 U.S.C. § 4402*
  - Heading: **CHAPTER 45-PAYMENT SYSTEM RISK REDUCTION**

