The Model Netting Act is a model law intended to set out, by example, the basic principles necessary to ensure the enforceability of bilateral close-out netting, including bilateral close-out netting on a multibranch basis, as well as the enforceability of related financial collateral arrangements.
The 2006 MNA is an updated version of ISDA’s 2002 Model Netting Act, which was in turn an updated version of our 1996 Model Netting Act. The Model Netting Acts have been used successfully as models for netting legislation in a number of jurisdictions and as a guide for policy-makers and educators to the basic principles that should underlie a comprehensive statutory regime for close-out netting.

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