Board Resolutions: Election of Commercial End-User Exception to Mandatory Clearing of Swaps and Security-Based Swaps under Dodd-Frank Act

This board resolutions template may be used by the board of directors of certain nonfinancial entities to elect the commercial end-user exception to the clearing requirements under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The commercial end-user exception provides an exception to the clearing requirement so that certain nonfinancial entities that use swaps and security-based swaps to hedge or mitigate commercial risks associated with their underlying business are not required to submit such instruments for clearing. These resolutions are only necessary with respect to swaps and security-based swaps for which there is a clearing mandate. This template includes practical guidance. For more information on the commercial end-user exception, see Commercial End-User Exception to Mandatory Clearing of Swaps and Security-Based Swaps under Title VII of the Dodd-Frank Act.