§5802. Definitions — Inbound Citations
12 U.S.C. § 5802
Cited by 122 provisions in release 119-102.
Citations to 12 U.S.C. § 5802 as a whole
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(CC) the LIBOR replacement date, as defined in section 5802 of title 12,
Citations to §5802(1)
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(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;
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(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;
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(C) used in any determinations of the benchmark under or with respect to the LIBOR contract occurring on and after the LIBOR replacement date.
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(5) The term “non-IBOR loan” means any loan that, by its terms, does not use in any way LIBOR, any tenor of non-U.S. dollar currency rates formerly known as the London interbank offered rate as administered by ICE Benchmark Administration Limited (or any predecessor or successor administrator thereof), and any other interbank offered rates that are expected to cease, as a benchmark.
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(b) With respect to a benchmark used by a bank—(1) the bank, in any non-IBOR loan made before, on, or after March 15, 2022, may use any benchmark, including a benchmark that is not SOFR, that the bank determines to be appropriate for the funding model of the bank; the needs of the customers of the bank; and the products, risk profile, risk management capabilities, and operational capabilities of the bank; provided, however, that the use of any benchmark shall remain subject to the terms of the non-IBOR loan, and applicable law; and
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(1) the bank, in any non-IBOR loan made before, on, or after March 15, 2022, may use any benchmark, including a benchmark that is not SOFR, that the bank determines to be appropriate for the funding model of the bank; the needs of the customers of the bank; and the products, risk profile, risk management capabilities, and operational capabilities of the bank; provided, however, that the use of any benchmark shall remain subject to the terms of the non-IBOR loan, and applicable law; and
Citations to §5802(2)
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(2) a requirement that a person (other than a benchmark administrator) conduct a poll, survey, or inquiries for quotes or information concerning interbank lending or deposit rates;
Citations to §5802(3)
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(a) On the LIBOR replacement date, the Board-selected benchmark replacement shall be the benchmark replacement for any LIBOR contract that, after giving any effect to subsection (b)—(1) contains no fallback provisions; or(2) contains fallback provisions that identify neither—(A) a specific benchmark replacement; nor(B) a determining person.
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(A) a specific benchmark replacement; nor
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(1) a benchmark replacement that is based in any way on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement; or
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(1) Subject to subsection (f)(2), a determining person may select the Board-selected benchmark replacement as the benchmark replacement.
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(B) made by the earlier of the LIBOR replacement date and the latest date for selecting a benchmark replacement according to the terms of the LIBOR contract; and
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(3) If a determining person does not select a benchmark replacement by the date specified in paragraph (2)(B), the Board-selected benchmark replacement, on and after the LIBOR replacement date, shall be the benchmark replacement for the LIBOR contract.
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(1) If the Board-selected benchmark replacement becomes the benchmark replacement for a LIBOR contract pursuant to subsection (a) or (c), all benchmark replacement conforming changes shall become an integral part of the LIBOR contract.
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(2) except as provided in subsection (b), any LIBOR contract that contains fallback provisions that identify a benchmark replacement that is not based in any way on any LIBOR value (including the prime rate or the effective Federal funds rate);
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(a) A Board-selected benchmark replacement and the selection or use of a Board-selected benchmark replacement as a benchmark replacement under or with respect to a LIBOR contract, and any benchmark replacement conforming changes, shall constitute—(1) a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR;(2) a reasonable, comparable, or analogous rate, index, or term for LIBOR;(3) a replacement that is based on a methodology or information that is similar or comparable to LIBOR;(4) substantial performance by any person of any right or obligation relating to or based on LIBOR; and(5) a replacement that has historical fluctuations that are substantially similar to those of LIBOR for purposes of the Truth in Lending Act (15 U.S.C. 1601 note)1 and regulations promulgated under that division.2
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(b) Neither the selection or use of a Board-selected benchmark replacement as a benchmark replacement nor the determination, implementation, or performance of benchmark replacement conforming changes under section 5803 of this title may—(1) be deemed to impair or affect the right of any person to receive a payment, or to affect the amount or timing of such payment, under any LIBOR contract; or(2) have the effect of—(A) discharging or excusing performance under any LIBOR contract for any reason, claim, or defense (including any force majeure or other provision in any LIBOR contract);(B) giving any person the right to unilaterally terminate or suspend performance under any LIBOR contract;(C) constituting a breach of any LIBOR contract; or(D) voiding or nullifying any LIBOR contract.
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(1) any benchmark replacement (including any method for calculating, determining, or implementing an adjustment to the benchmark replacement to account for any historical differences between LIBOR and the benchmark replacement) that is not a Board-selected benchmark replacement; or
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(1) relating to the selection or use of a benchmark replacement or related conforming changes; or
Citations to §5802(4)
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(1) If the Board-selected benchmark replacement becomes the benchmark replacement for a LIBOR contract pursuant to subsection (a) or (c), all benchmark replacement conforming changes shall become an integral part of the LIBOR contract.
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(2) A calculating person shall not be required to obtain consent from any other person prior to the adoption of benchmark replacement conforming changes.
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(a) A Board-selected benchmark replacement and the selection or use of a Board-selected benchmark replacement as a benchmark replacement under or with respect to a LIBOR contract, and any benchmark replacement conforming changes, shall constitute—(1) a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR;(2) a reasonable, comparable, or analogous rate, index, or term for LIBOR;(3) a replacement that is based on a methodology or information that is similar or comparable to LIBOR;(4) substantial performance by any person of any right or obligation relating to or based on LIBOR; and(5) a replacement that has historical fluctuations that are substantially similar to those of LIBOR for purposes of the Truth in Lending Act (15 U.S.C. 1601 note)1 and regulations promulgated under that division.2
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(b) Neither the selection or use of a Board-selected benchmark replacement as a benchmark replacement nor the determination, implementation, or performance of benchmark replacement conforming changes under section 5803 of this title may—(1) be deemed to impair or affect the right of any person to receive a payment, or to affect the amount or timing of such payment, under any LIBOR contract; or(2) have the effect of—(A) discharging or excusing performance under any LIBOR contract for any reason, claim, or defense (including any force majeure or other provision in any LIBOR contract);(B) giving any person the right to unilaterally terminate or suspend performance under any LIBOR contract;(C) constituting a breach of any LIBOR contract; or(D) voiding or nullifying any LIBOR contract.
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(2) the implementation of benchmark replacement conforming changes; or
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(3) with respect to a LIBOR contract that is not a consumer loan, the determination of benchmark replacement conforming changes,
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(d) The selection or use of a Board-selected benchmark replacement or the determination, implementation, or performance of benchmark replacement conforming changes under section 5803 of this title shall not be deemed to—(1) be an amendment or modification of any LIBOR contract; or(2) prejudice, impair, or affect the rights, interests, or obligations of any person under or with respect to any LIBOR contract.
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(2) any changes, alterations, or modifications to or with respect to a LIBOR contract that are not benchmark replacement conforming changes.
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(2) expressly limiting the manner of calculating interest, including the compounding of interest, as that provision applies to the selection or use of a Board-selected benchmark replacement or benchmark replacement conforming changes.
Citations to §5802(5)
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(1) Except as provided in paragraph (2), on the LIBOR replacement date, the Board shall adjust the Board-selected benchmark replacement for each category of LIBOR contract that the Board may identify to include the relevant tenor spread adjustment.
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(2) For LIBOR contracts that are consumer loans, the Board shall adjust the Board-selected benchmark replacement as follows:(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.(B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.
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(B) the issuance by a Federal supervisory agency of a matter requiring attention, a matter requiring immediate attention; or a matter requiring board attention resulting from a supervisory activity conducted by the Federal supervisory agency.
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Not later than 180 days after March 15, 2022, the Board shall promulgate regulations to carry out this chapter.
Citations to §5802(6)
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(a) On the LIBOR replacement date, the Board-selected benchmark replacement shall be the benchmark replacement for any LIBOR contract that, after giving any effect to subsection (b)—(1) contains no fallback provisions; or(2) contains fallback provisions that identify neither—(A) a specific benchmark replacement; nor(B) a determining person.
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(1) Subject to subsection (f)(2), a determining person may select the Board-selected benchmark replacement as the benchmark replacement.
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(2) Any selection by a determining person of the Board-selected benchmark replacement pursuant to paragraph (1) shall be—(A) irrevocable;(B) made by the earlier of the LIBOR replacement date and the latest date for selecting a benchmark replacement according to the terms of the LIBOR contract; and(C) used in any determinations of the benchmark under or with respect to the LIBOR contract occurring on and after the LIBOR replacement date.
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(3) If a determining person does not select a benchmark replacement by the date specified in paragraph (2)(B), the Board-selected benchmark replacement, on and after the LIBOR replacement date, shall be the benchmark replacement for the LIBOR contract.
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(1) If the Board-selected benchmark replacement becomes the benchmark replacement for a LIBOR contract pursuant to subsection (a) or (c), all benchmark replacement conforming changes shall become an integral part of the LIBOR contract.
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(1) Except as provided in paragraph (2), on the LIBOR replacement date, the Board shall adjust the Board-selected benchmark replacement for each category of LIBOR contract that the Board may identify to include the relevant tenor spread adjustment.
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(2) For LIBOR contracts that are consumer loans, the Board shall adjust the Board-selected benchmark replacement as follows:(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.(B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.
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(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.
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(3) except as provided in subsection (b) or (c)(3), any LIBOR contract subject to subsection (c)(1) as to which a determining person does not elect to use a Board-selected benchmark replacement pursuant to that subsection;
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(4) the application to a Board-selected benchmark replacement of any cap, floor, modifier, or spread adjustment to which LIBOR had been subject pursuant to the terms of a LIBOR contract;
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(a) A Board-selected benchmark replacement and the selection or use of a Board-selected benchmark replacement as a benchmark replacement under or with respect to a LIBOR contract, and any benchmark replacement conforming changes, shall constitute—(1) a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR;(2) a reasonable, comparable, or analogous rate, index, or term for LIBOR;(3) a replacement that is based on a methodology or information that is similar or comparable to LIBOR;(4) substantial performance by any person of any right or obligation relating to or based on LIBOR; and(5) a replacement that has historical fluctuations that are substantially similar to those of LIBOR for purposes of the Truth in Lending Act (15 U.S.C. 1601 note)1 and regulations promulgated under that division.2
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(b) Neither the selection or use of a Board-selected benchmark replacement as a benchmark replacement nor the determination, implementation, or performance of benchmark replacement conforming changes under section 5803 of this title may—(1) be deemed to impair or affect the right of any person to receive a payment, or to affect the amount or timing of such payment, under any LIBOR contract; or(2) have the effect of—(A) discharging or excusing performance under any LIBOR contract for any reason, claim, or defense (including any force majeure or other provision in any LIBOR contract);(B) giving any person the right to unilaterally terminate or suspend performance under any LIBOR contract;(C) constituting a breach of any LIBOR contract; or(D) voiding or nullifying any LIBOR contract.
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(1) the selection or use of a Board-selected benchmark replacement;
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(d) The selection or use of a Board-selected benchmark replacement or the determination, implementation, or performance of benchmark replacement conforming changes under section 5803 of this title shall not be deemed to—(1) be an amendment or modification of any LIBOR contract; or(2) prejudice, impair, or affect the rights, interests, or obligations of any person under or with respect to any LIBOR contract.
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(1) any benchmark replacement (including any method for calculating, determining, or implementing an adjustment to the benchmark replacement to account for any historical differences between LIBOR and the benchmark replacement) that is not a Board-selected benchmark replacement; or
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(2) expressly limiting the manner of calculating interest, including the compounding of interest, as that provision applies to the selection or use of a Board-selected benchmark replacement or benchmark replacement conforming changes.
Citations to §5802(7)
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(2) A calculating person shall not be required to obtain consent from any other person prior to the adoption of benchmark replacement conforming changes.
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(c) No person shall be subject to any claim or cause of action in law or equity or request for equitable relief, or have liability for damages, arising out of—(1) the selection or use of a Board-selected benchmark replacement;(2) the implementation of benchmark replacement conforming changes; or(3) with respect to a LIBOR contract that is not a consumer loan, the determination of benchmark replacement conforming changes,in each case after giving effect to the provisions of section 5803 of this title; provided, however, that in each case any person (including a calculating person) shall remain subject to the terms of a LIBOR contract that are not affected by this chapter and any existing legal, regulatory, or contractual obligations to correct servicing or other ministerial errors under or with respect to a LIBOR contract.
Citations to §5802(8)
Citations to §5802(9)
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(2) For LIBOR contracts that are consumer loans, the Board shall adjust the Board-selected benchmark replacement as follows:(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.(B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.
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(3) with respect to a LIBOR contract that is not a consumer loan, the determination of benchmark replacement conforming changes,
Citations to §5802(10)
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(B) a determining person.
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(1) Subject to subsection (f)(2), a determining person may select the Board-selected benchmark replacement as the benchmark replacement.
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(2) Any selection by a determining person of the Board-selected benchmark replacement pursuant to paragraph (1) shall be—(A) irrevocable;(B) made by the earlier of the LIBOR replacement date and the latest date for selecting a benchmark replacement according to the terms of the LIBOR contract; and(C) used in any determinations of the benchmark under or with respect to the LIBOR contract occurring on and after the LIBOR replacement date.
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(3) If a determining person does not select a benchmark replacement by the date specified in paragraph (2)(B), the Board-selected benchmark replacement, on and after the LIBOR replacement date, shall be the benchmark replacement for the LIBOR contract.
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(3) except as provided in subsection (b) or (c)(3), any LIBOR contract subject to subsection (c)(1) as to which a determining person does not elect to use a Board-selected benchmark replacement pursuant to that subsection;
Citations to §5802(11)
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(1) contains no fallback provisions; or
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(2) contains fallback provisions that identify neither—(A) a specific benchmark replacement; nor(B) a determining person.
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(b) On the LIBOR replacement date, any reference in the fallback provisions of a LIBOR contract to—(1) a benchmark replacement that is based in any way on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement; or(2) a requirement that a person (other than a benchmark administrator) conduct a poll, survey, or inquiries for quotes or information concerning interbank lending or deposit rates;shall be disregarded as if not included in the fallback provisions of such LIBOR contract and shall be deemed null and void and without any force or effect.
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(2) except as provided in subsection (b), any LIBOR contract that contains fallback provisions that identify a benchmark replacement that is not based in any way on any LIBOR value (including the prime rate or the effective Federal funds rate);
Citations to §5802(12)
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(5) The term “non-IBOR loan” means any loan that, by its terms, does not use in any way LIBOR, any tenor of non-U.S. dollar currency rates formerly known as the London interbank offered rate as administered by ICE Benchmark Administration Limited (or any predecessor or successor administrator thereof), and any other interbank offered rates that are expected to cease, as a benchmark.
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(1) the bank, in any non-IBOR loan made before, on, or after March 15, 2022, may use any benchmark, including a benchmark that is not SOFR, that the bank determines to be appropriate for the funding model of the bank; the needs of the customers of the bank; and the products, risk profile, risk management capabilities, and operational capabilities of the bank; provided, however, that the use of any benchmark shall remain subject to the terms of the non-IBOR loan, and applicable law; and
Citations to §5802(15)
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(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;
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(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
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(4) to address LIBOR references in Federal law.
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(1) a benchmark replacement that is based in any way on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement; or
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(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.
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(2) except as provided in subsection (b), any LIBOR contract that contains fallback provisions that identify a benchmark replacement that is not based in any way on any LIBOR value (including the prime rate or the effective Federal funds rate);
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(4) the application to a Board-selected benchmark replacement of any cap, floor, modifier, or spread adjustment to which LIBOR had been subject pursuant to the terms of a LIBOR contract;
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(1) a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR;
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(2) a reasonable, comparable, or analogous rate, index, or term for LIBOR;
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(3) a replacement that is based on a methodology or information that is similar or comparable to LIBOR;
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(5) a replacement that has historical fluctuations that are substantially similar to those of LIBOR for purposes of the Truth in Lending Act (15 U.S.C. 1601 note)1 and regulations promulgated under that division.2
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(1) any benchmark replacement (including any method for calculating, determining, or implementing an adjustment to the benchmark replacement to account for any historical differences between LIBOR and the benchmark replacement) that is not a Board-selected benchmark replacement; or
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(5) The term “non-IBOR loan” means any loan that, by its terms, does not use in any way LIBOR, any tenor of non-U.S. dollar currency rates formerly known as the London interbank offered rate as administered by ICE Benchmark Administration Limited (or any predecessor or successor administrator thereof), and any other interbank offered rates that are expected to cease, as a benchmark.
Citations to §5802(16)
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(a) On the LIBOR replacement date, the Board-selected benchmark replacement shall be the benchmark replacement for any LIBOR contract that, after giving any effect to subsection (b)—(1) contains no fallback provisions; or(2) contains fallback provisions that identify neither—(A) a specific benchmark replacement; nor(B) a determining person.
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(b) On the LIBOR replacement date, any reference in the fallback provisions of a LIBOR contract to—(1) a benchmark replacement that is based in any way on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement; or(2) a requirement that a person (other than a benchmark administrator) conduct a poll, survey, or inquiries for quotes or information concerning interbank lending or deposit rates;shall be disregarded as if not included in the fallback provisions of such LIBOR contract and shall be deemed null and void and without any force or effect.
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(B) made by the earlier of the LIBOR replacement date and the latest date for selecting a benchmark replacement according to the terms of the LIBOR contract; and
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(C) used in any determinations of the benchmark under or with respect to the LIBOR contract occurring on and after the LIBOR replacement date.
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(3) If a determining person does not select a benchmark replacement by the date specified in paragraph (2)(B), the Board-selected benchmark replacement, on and after the LIBOR replacement date, shall be the benchmark replacement for the LIBOR contract.
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(1) If the Board-selected benchmark replacement becomes the benchmark replacement for a LIBOR contract pursuant to subsection (a) or (c), all benchmark replacement conforming changes shall become an integral part of the LIBOR contract.
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(1) Except as provided in paragraph (2), on the LIBOR replacement date, the Board shall adjust the Board-selected benchmark replacement for each category of LIBOR contract that the Board may identify to include the relevant tenor spread adjustment.
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(2) For LIBOR contracts that are consumer loans, the Board shall adjust the Board-selected benchmark replacement as follows:(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.(B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.
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(1) any written agreement specifying that a LIBOR contract shall not be subject to this chapter;
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(2) except as provided in subsection (b), any LIBOR contract that contains fallback provisions that identify a benchmark replacement that is not based in any way on any LIBOR value (including the prime rate or the effective Federal funds rate);
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(3) except as provided in subsection (b) or (c)(3), any LIBOR contract subject to subsection (c)(1) as to which a determining person does not elect to use a Board-selected benchmark replacement pursuant to that subsection;
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(4) the application to a Board-selected benchmark replacement of any cap, floor, modifier, or spread adjustment to which LIBOR had been subject pursuant to the terms of a LIBOR contract;
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(a) A Board-selected benchmark replacement and the selection or use of a Board-selected benchmark replacement as a benchmark replacement under or with respect to a LIBOR contract, and any benchmark replacement conforming changes, shall constitute—(1) a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR;(2) a reasonable, comparable, or analogous rate, index, or term for LIBOR;(3) a replacement that is based on a methodology or information that is similar or comparable to LIBOR;(4) substantial performance by any person of any right or obligation relating to or based on LIBOR; and(5) a replacement that has historical fluctuations that are substantially similar to those of LIBOR for purposes of the Truth in Lending Act (15 U.S.C. 1601 note)1 and regulations promulgated under that division.2
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(1) be deemed to impair or affect the right of any person to receive a payment, or to affect the amount or timing of such payment, under any LIBOR contract; or
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(A) discharging or excusing performance under any LIBOR contract for any reason, claim, or defense (including any force majeure or other provision in any LIBOR contract);
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(B) giving any person the right to unilaterally terminate or suspend performance under any LIBOR contract;
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(C) constituting a breach of any LIBOR contract; or
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(D) voiding or nullifying any LIBOR contract.
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(c) No person shall be subject to any claim or cause of action in law or equity or request for equitable relief, or have liability for damages, arising out of—(1) the selection or use of a Board-selected benchmark replacement;(2) the implementation of benchmark replacement conforming changes; or(3) with respect to a LIBOR contract that is not a consumer loan, the determination of benchmark replacement conforming changes,in each case after giving effect to the provisions of section 5803 of this title; provided, however, that in each case any person (including a calculating person) shall remain subject to the terms of a LIBOR contract that are not affected by this chapter and any existing legal, regulatory, or contractual obligations to correct servicing or other ministerial errors under or with respect to a LIBOR contract.
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(3) with respect to a LIBOR contract that is not a consumer loan, the determination of benchmark replacement conforming changes,
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(1) be an amendment or modification of any LIBOR contract; or
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(2) prejudice, impair, or affect the rights, interests, or obligations of any person under or with respect to any LIBOR contract.
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(2) any changes, alterations, or modifications to or with respect to a LIBOR contract that are not benchmark replacement conforming changes.
Citations to §5802(17)
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(a) On the LIBOR replacement date, the Board-selected benchmark replacement shall be the benchmark replacement for any LIBOR contract that, after giving any effect to subsection (b)—(1) contains no fallback provisions; or(2) contains fallback provisions that identify neither—(A) a specific benchmark replacement; nor(B) a determining person.
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(b) On the LIBOR replacement date, any reference in the fallback provisions of a LIBOR contract to—(1) a benchmark replacement that is based in any way on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement; or(2) a requirement that a person (other than a benchmark administrator) conduct a poll, survey, or inquiries for quotes or information concerning interbank lending or deposit rates;shall be disregarded as if not included in the fallback provisions of such LIBOR contract and shall be deemed null and void and without any force or effect.
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(B) made by the earlier of the LIBOR replacement date and the latest date for selecting a benchmark replacement according to the terms of the LIBOR contract; and
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(C) used in any determinations of the benchmark under or with respect to the LIBOR contract occurring on and after the LIBOR replacement date.
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(3) If a determining person does not select a benchmark replacement by the date specified in paragraph (2)(B), the Board-selected benchmark replacement, on and after the LIBOR replacement date, shall be the benchmark replacement for the LIBOR contract.
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(1) Except as provided in paragraph (2), on the LIBOR replacement date, the Board shall adjust the Board-selected benchmark replacement for each category of LIBOR contract that the Board may identify to include the relevant tenor spread adjustment.
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(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.
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(B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.
Citations to §5802(19)
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(1) the bank, in any non-IBOR loan made before, on, or after March 15, 2022, may use any benchmark, including a benchmark that is not SOFR, that the bank determines to be appropriate for the funding model of the bank; the needs of the customers of the bank; and the products, risk profile, risk management capabilities, and operational capabilities of the bank; provided, however, that the use of any benchmark shall remain subject to the terms of the non-IBOR loan, and applicable law; and
Citations to §5802(20)
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(1) Except as provided in paragraph (2), on the LIBOR replacement date, the Board shall adjust the Board-selected benchmark replacement for each category of LIBOR contract that the Board may identify to include the relevant tenor spread adjustment.
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(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.
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(B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.