The Congress finds that—

((1)) many financial institutions engage daily in thousands of transactions with other financial institutions directly and through clearing organizations;

((2)) the efficient processing of such transactions is essential to a smoothly functioning economy;

((3)) such transactions can be processed most efficiently if, consistent with applicable contractual terms, obligations among financial institutions are netted;

((4)) such netting procedures would reduce the systemic risk within the banking system and financial markets; and

((5)) the effectiveness of such netting procedures can be assured only if they are recognized as valid and legally binding in the event of the closing of a financial institution participating in the netting procedures.