---
kind: "section"
citation: "12 U.S.C. § 5803"
title: "12"
title_heading: "Banks and Banking"
number: "5803"
heading: "LIBOR contracts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5803"
units:
  - "Chapter 55 — Adjustable Interest Rate (libor)"
---

# §5803. LIBOR contracts

- (a) **In general—** On the [LIBOR replacement date](/usc/12/5802.md?p=17), the [Board-selected benchmark replacement](/usc/12/5802.md?p=6) shall be the [benchmark replacement](/usc/12/5802.md?p=3) for any [LIBOR contract](/usc/12/5802.md?p=16) that, after giving any effect to [subsection (b)](#b)—
  - (1) contains no [fallback provisions](/usc/12/5802.md?p=11); or
  - (2) contains [fallback provisions](/usc/12/5802.md?p=11) that identify neither—
    - (A) a specific [benchmark replacement](/usc/12/5802.md?p=3); nor
    - (B) a [determining person](/usc/12/5802.md?p=10).
- (b) **Fallback provisions—** On the [LIBOR replacement date](/usc/12/5802.md?p=17), any reference in the [fallback provisions](/usc/12/5802.md?p=11) of a [LIBOR contract](/usc/12/5802.md?p=16) to—
  - (1) a [benchmark replacement](/usc/12/5802.md?p=3) that is based in any way on any [LIBOR](/usc/12/5802.md?p=15) value, except to account for the difference between [LIBOR](/usc/12/5802.md?p=15) and the [benchmark replacement](/usc/12/5802.md?p=3); or
  - (2) a requirement that a [person](/usc/12/5481.md?p=19) (other than a [benchmark administrator](/usc/12/5802.md?p=2)) 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](/usc/12/5802.md?p=11) of such [LIBOR contract](/usc/12/5802.md?p=16) and shall be deemed null and void and without any force or effect.

- (c) **Authority of determining person—**
  - (1) **In general—** Subject to [subsection (f)(2)](#f-2), a [determining person](/usc/12/5802.md?p=10) may select the [Board-selected benchmark replacement](/usc/12/5802.md?p=6) as the [benchmark replacement](/usc/12/5802.md?p=3).
  - (2) **Selection—** Any selection by a [determining person](/usc/12/5802.md?p=10) of the [Board-selected benchmark replacement](/usc/12/5802.md?p=6) pursuant to [paragraph (1)](#c-1) shall be—
    - (A) irrevocable;
    - (B) made by the earlier of the [LIBOR replacement date](/usc/12/5802.md?p=17) and the latest date for selecting a [benchmark replacement](/usc/12/5802.md?p=3) according to the terms of the [LIBOR contract](/usc/12/5802.md?p=16); and
    - (C) used in any determinations of the [benchmark](/usc/12/5802.md?p=1) under or with respect to the [LIBOR contract](/usc/12/5802.md?p=16) occurring on and after the [LIBOR replacement date](/usc/12/5802.md?p=17).
  - (3) **No selection—** If a [determining person](/usc/12/5802.md?p=10) does not select a [benchmark replacement](/usc/12/5802.md?p=3) by the date specified in [paragraph (2)(B)](#c-2-B), the [Board-selected benchmark replacement](/usc/12/5802.md?p=6), on and after the [LIBOR replacement date](/usc/12/5802.md?p=17), shall be the [benchmark replacement](/usc/12/5802.md?p=3) for the [LIBOR contract](/usc/12/5802.md?p=16).
- (d) **Conforming changes—**
  - (1) **In general—** If the [Board-selected benchmark replacement](/usc/12/5802.md?p=6) becomes the [benchmark replacement](/usc/12/5802.md?p=3) for a [LIBOR contract](/usc/12/5802.md?p=16) pursuant to subsection [(a)](#a) or [(c)](#c), all [benchmark replacement conforming changes](/usc/12/5802.md?p=4) shall become an integral part of the [LIBOR contract](/usc/12/5802.md?p=16).
  - (2) **No consent required—** A [calculating person](/usc/12/5802.md?p=7) shall not be required to obtain consent from any other [person](/usc/12/5481.md?p=19) prior to the adoption of [benchmark replacement conforming changes](/usc/12/5802.md?p=4).
- (e) **Adjustment by Board—**
  - (1) **In general—** Except as provided in [paragraph (2)](#e-2), on the [LIBOR replacement date](/usc/12/5802.md?p=17), the [Board](/usc/12/5802.md?p=5) shall adjust the [Board-selected benchmark replacement](/usc/12/5802.md?p=6) for each category of [LIBOR contract](/usc/12/5802.md?p=16) that the [Board](/usc/12/5802.md?p=5) may identify to include the relevant [tenor spread adjustment](/usc/12/5802.md?p=20).
  - (2) **Consumer loans—** For [LIBOR contracts](/usc/12/5802.md?p=16) that are [consumer loans](/usc/12/5802.md?p=9), the [Board](/usc/12/5802.md?p=5) shall adjust the [Board-selected benchmark replacement](/usc/12/5802.md?p=6) as follows:
    - (A) During the 1-year period beginning on the [LIBOR replacement date](/usc/12/5802.md?p=17), 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](/usc/12/5802.md?p=6) and the corresponding [LIBOR](/usc/12/5802.md?p=15) tenor determined as of the day immediately before the [LIBOR replacement date](/usc/12/5802.md?p=17) to the relevant [tenor spread adjustment](/usc/12/5802.md?p=20).
    - (B) On and after the date that is 1 year after the [LIBOR replacement date](/usc/12/5802.md?p=17), incorporate the relevant [tenor spread adjustment](/usc/12/5802.md?p=20).
- (f) **Rule of construction—** Nothing in this chapter may be construed to alter or impair—
  - (1) any written agreement specifying that a [LIBOR contract](/usc/12/5802.md?p=16) shall not be subject to this chapter;
  - (2) except as provided in [subsection (b)](#b), any [LIBOR contract](/usc/12/5802.md?p=16) that contains [fallback provisions](/usc/12/5802.md?p=11) that identify a [benchmark replacement](/usc/12/5802.md?p=3) that is not based in any way on any [LIBOR](/usc/12/5802.md?p=15) value (including the prime rate or the effective Federal funds rate);
  - (3) except as provided in subsection [(b)](#b) or [(c)(3)](#c-3), any [LIBOR contract](/usc/12/5802.md?p=16) subject to [subsection (c)(1)](#c-1) as to which a [determining person](/usc/12/5802.md?p=10) does not elect to use a [Board-selected benchmark replacement](/usc/12/5802.md?p=6) pursuant to that subsection;
  - (4) the application to a [Board-selected benchmark replacement](/usc/12/5802.md?p=6) of any cap, floor, modifier, or spread adjustment to which [LIBOR](/usc/12/5802.md?p=15) had been subject pursuant to the terms of a [LIBOR contract](/usc/12/5802.md?p=16);
  - (5) any provision of [Federal consumer financial law](/usc/12/5481.md?p=14) that—
    - (A) requires creditors to notify borrowers regarding a change-in-terms; or
    - (B) governs the reevaluation of rate increases on [credit](/usc/12/5802.md?p=8) card accounts under open-ended (not home-secured) [consumer](/usc/12/5802.md?p=8) [credit](/usc/12/5802.md?p=8) plans; or
  - (6) except as provided in [section 5804(c) of this title](/usc/12/5804.md?p=c), the rights or obligations of any [person](/usc/12/5481.md?p=19), or the authorities of any agency, under [Federal consumer financial law](/usc/12/5481.md?p=14), as defined in [section 5481 of this title](/usc/12/5481.md).

## Source credit

(Pub. L. 117–103, div. U, § 104, Mar. 15, 2022, 136 Stat. 828.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (f), 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 under section 5801 of this title and Tables.