17:16-24.1 Definitions
The following words and terms, when used in this subchapter, shall have the following meaning, unless the context clearly indicates otherwise:
"Credit default swap transactions" means a contract between two parties, whereby one makes periodic payments to the other and receives the promise of a payoff if a third party defaults. The former party receives credit protection and is said to be the "buyer" while the other party provides credit protection and is said to be the "seller." The risk of default is transferred from the buyer of the swap to the seller of the swap.