President Signs LIBOR Bill to Address Legacy Contracts
March 29, 2022
To prevent the cessation of LIBOR resulting in disruptive litigation, President Biden signed into law on March 15 the Adjustable Interest Rate (LIBOR) Act, as part of the Omnibus spending bill. LIBOR, the benchmark used in existing contracts, will be discontinued after June 30, 2023. For existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate, the Act will help with the transition away from LIBOR by establishing a national, uniform process to be conducted by the Federal Reserve Board for replacing LIBOR in these contracts.