Bill

Bill > S00297


NY S00297

NY S00297
Enacts provisions relating to the discontinuance of LIBOR (the London interbank offered rate); prohibits parties from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of LIBOR or the use of a replacement; establishes that the replacement is a commercially reasonable substitute for and a commercially substantial equivalent to LIBOR; provides a safe harbor from litigation for the use of the recommended benchmark replacement.


summary

Introduced
01/06/2021
In Committee
01/06/2021
Crossed Over
Passed
Dead
12/31/2022

Introduced Session

2021-2022 General Assembly

Bill Summary

Enacts provisions relating to the discontinuance of LIBOR (the London interbank offered rate); prohibits parties from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of LIBOR or the use of a replacement; establishes that the replacement is a commercially reasonable substitute for and a commercially substantial equivalent to LIBOR; and provides a safe harbor from litigation for the use of the recommended benchmark replacement.

AI Summary

This bill enacts provisions relating to the discontinuance of LIBOR (the London interbank offered rate). It prohibits parties from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of LIBOR or the use of a replacement. The bill establishes that the replacement is a commercially reasonable substitute for and a commercially substantial equivalent to LIBOR, and provides a safe harbor from litigation for the use of the recommended benchmark replacement, which is based on SOFR (the Secured Overnight Financing Rate) as selected or recommended by a relevant recommending body.

Committee Categories

Justice

Sponsors (2)

Last Action

SUBSTITUTED BY A164B (on 03/24/2021)

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