---
kind: "section"
citation: "12 U.S.C. § 5801"
title: "12"
title_heading: "Banks and Banking"
number: "5801"
heading: "Findings and purpose"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5801"
units:
  - "Chapter 55 — Adjustable Interest Rate (libor)"
---

# §5801. Findings and purpose

- (a) **Findings—** Congress finds that—
  - (1) [LIBOR](/usc/12/5802.md?p=15) is used as a [benchmark](/usc/12/5802.md?p=1) rate in more than $200,000,000,000,000 worth of contracts worldwide;
  - (2) a significant number of existing contracts that reference [LIBOR](/usc/12/5802.md?p=15) do not provide for the use of a clearly defined or practicable replacement [benchmark](/usc/12/5802.md?p=1) rate when [LIBOR](/usc/12/5802.md?p=15) is discontinued; and
  - (3) the cessation or nonrepresentativeness of [LIBOR](/usc/12/5802.md?p=15) could result in disruptive litigation related to existing contracts that do not provide for the use of a clearly defined or practicable replacement [benchmark](/usc/12/5802.md?p=1) 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](/usc/12/5802.md?p=15) in existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement [benchmark](/usc/12/5802.md?p=1) rate, without affecting the ability of parties to use any appropriate [benchmark](/usc/12/5802.md?p=1) 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](/usc/12/5802.md?p=1) rate;
  - (3) to allow existing contracts that reference [LIBOR](/usc/12/5802.md?p=15) but provide for the use of a clearly defined and practicable replacement rate, to operate according to their terms; and
  - (4) to address [LIBOR](/usc/12/5802.md?p=15) references in Federal law.

## Source credit

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

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (b), was in the original “this division”, meaning div. U of Pub. L. 117–103, Mar. 15, 2022, 136 Stat. 825, 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, § 101, Mar. 15, 2022, 136 Stat. 825, provided that: “This division [enacting this chapter and amending section 77ppp of Title 15, Commerce and Trade, and section 1087–1 of Title 20, Education] may be cited as the ‘Adjustable Interest Rate (LIBOR) Act’.”