Sec. 3. Definitions
679 words·~3 min read·
/bill/117/hr/4616/rh/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in this Act, the following terms shall have the following meanings: Benchmark shall mean an index of interest rates or dividend rates that is used, in whole or in part, as the basis of or as a reference for calculating or determining any valuation, payment or other measurement. Benchmark Administrator means a person that publishes a Benchmark for use by third parties. Benchmark Replacement shall mean a Benchmark, or an interest rate or dividend rate (which may or may not be based in whole or in part on a prior setting of LIBOR), to replace LIBOR or any interest rate or dividend rate based on LIBOR, whether on a temporary, permanent, or indefinite basis, under or in respect of a LIBOR Contract.
Benchmark Replacement Conforming Changes shall mean any technical, administrative, or operational changes, alterations, or modifications that— the Board establishes for the purpose of facilitating the implementation, administration, and calculation of the Board-Selected Benchmark Replacement; or in the reasonable judgment of a Calculating Person, are otherwise necessary or appropriate to permit the implementation, administration, and calculation of the Board-Selected Benchmark Replacement under or in respect of a LIBOR Contract after giving due consideration to any Benchmark Replacement Conforming Changes under subparagraph (A).
Board means the Board of Governors of the Federal Reserve System. Board-Selected Benchmark Replacement shall mean a Benchmark Replacement identified by the Board that is based on SOFR. The Board shall adjust the Board-Selected Benchmark Replacement for each category of LIBOR Contract that the Board may identify to— apply to each LIBOR tenor; and incorporate the relevant Tenor Spread Adjustment. For Consumer Loans, the Board-Selected Benchmark Replacement shall initially reflect the spread between the Board-Selected Benchmark Replacement and LIBOR immediately before the LIBOR Replacement Date and shall incorporate the relevant Tenor Spread Adjustment over a one-year transition period.
Calculating Person shall mean, with respect to any LIBOR Contract, any person (which may be the Determining Person) responsible for calculating or determining any valuation, payment, or other measurement based on a Benchmark. Consumer Loan shall mean a consumer credit transaction. For purposes of this paragraph, the terms consumer and credit have the meaning given those terms, respectively, under section 103 of the Truth in Lending Act ( 15 U.S.C. 1602 ). Determining Person shall mean, with respect to any LIBOR Contract, any person with the authority, right, or obligation, including on a temporary basis, (as identified by the provisions of the LIBOR Contract, or as identified by the governing law of the LIBOR Contract, as appropriate) to determine a Benchmark Replacement.
Fallback Provisions shall mean terms in a LIBOR Contract for determining a Benchmark Replacement, including any terms relating to the date on which the Benchmark Replacement becomes effective. LIBOR shall mean the overnight and 1-, 3-, 6-, and 12-month tenors of U.S. dollar LIBOR (formerly known as the London interbank offered rate) as administered by ICE Benchmark Administration Limited (or any predecessor or successor thereof). LIBOR shall not include the 1-week or 2-month tenors of U.S. dollar LIBOR.
LIBOR Contract shall mean, without limitation, any contract, agreement, indenture, organizational documents, guarantee, mortgage, deed of trust, lease, Security (whether representing debt or equity, and including any interest in a corporation, a partnership, or a limited liability company), instrument, or other obligation or asset that, by its terms, continues in any way to use LIBOR as a Benchmark as of the applicable LIBOR Replacement Date. LIBOR Replacement Date shall mean the first London banking day after June 30, 2023, unless the Board determines that any LIBOR tenor will cease to be published or cease to be representative on a different date.
Security shall have the meaning assigned to such term in section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ). SOFR shall mean the Secured Overnight Financing Rate published by the Federal Reserve Bank of New York (or a successor administrator). Tenor Spread Adjustment shall mean— 0.00644 percent for overnight LIBOR; 0.11448 percent for 1-month LIBOR; 0.26161 percent for 3-month LIBOR; 0.42826 percent for 6-month LIBOR; and 0.71513 percent for 12-month LIBOR.
Connectionstraces to 2
Traces to 2 documents
Citation graph
cites case law
Cites 2Cited by 0 across 0 sources