Bill
Bill > S00297
NY S00297
NY S00297Enacts 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
01/06/2021
In Committee
01/06/2021
01/06/2021
Crossed Over
Passed
Dead
12/31/2022
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)
Official Document
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