§ 5801. Findings and purpose

338 words·~2 min read·/usc/title-12/section-5801

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Findings Congress finds that—

(1)LIBOR is used as a benchmark rate in more than $200,000,000,000,000 worth of contracts worldwide;

(2)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

(3)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.

(b)Purpose It is the purpose of this chapter—

(1)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;

(2)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;

(3)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

(4)to address LIBOR references in Federal law.

(Pub. L. 117–103, div. U, § 102, Mar. 15, 2022, 136 Stat. 825.)

Connections15 cite this · traces to 3

Cited by 15 sections · top 9

public-private-law