Findings
Congress finds that—
LIBOR is used as a benchmark rate in more than $200,000,000,000,000 worth of contracts worldwide;
a significant number of existing contracts that reference LIBOR do not provide for the use of a clearly defined or practicable replacement benchmark rate when LIBOR is discontinued; and
the cessation or nonrepresentativeness of LIBOR could result in disruptive litigation related to existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate.
Purpose
It is the purpose of this chapter—
to establish a clear and uniform process, on a nationwide basis, for replacing LIBOR in existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement benchmark rate, without affecting the ability of parties to use any appropriate benchmark rate in new contracts;
to preclude litigation related to existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement benchmark rate;
to allow existing contracts that reference LIBOR but provide for the use of a clearly defined and practicable replacement rate, to operate according to their terms; and
to address LIBOR references in Federal law.
Pub. L. 117–103, div. U, § 102136 Stat. 825(, , .)
Editorial Notes
References in Text
Pub. L. 117–103136 Stat. 825This chapter, referred to in subsec. (b), was in the original “this division”, meaning div. U of , , , known as the Adjustable Interest Rate (LIBOR) Act, which is classified principally to this chapter. For complete classification of div. U to the Code, see Short Title note set out below and Tables.
Statutory Notes and Related Subsidiaries
Short Title
Pub. L. 117–103, div. U, § 101136 Stat. 825
section 77ppp of Title 15section 1087–1 of Title 20“This division [enacting this chapter and amending , Commerce and Trade, and , Education] may be cited as the ‘Adjustable Interest Rate (LIBOR) Act’.”
, , , provided that: