Bill > S09070

This bill enacts provisions related to the discontinuation of LIBOR (the London interbank offered rate), which is a widely-used benchmark interest rate. The key provisions are: 1) it prohibits parties from refusing to perform contractual obligations or declaring a breach of contract due to the discontinuation of LIBOR or the use of a replacement; 2) it establishes that the replacement benchmark is a commercially reasonable substitute for and equivalent to LIBOR; and 3) it provides a safe harbor from litigation for the use of the recommended replacement benchmark. The bill aims to ensure a smooth transition away from LIBOR, which is being phased out, by providing legal certainty and protection for the use of an alternative benchmark.