1. (a) This section applies to any contract, security, or instrument that uses LIBOR as a benchmark and that contains fallback provisions that permit or require the selection of a benchmark replacement that:

   1. (1) is based in any way on any LIBOR value; or

   2. (2) is:

      1. (A) a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR;
      2. (B) a reasonable, comparable, or analogous term for LIBOR under or with respect to the contract, security, or instrument; or
      3. (C) based on a methodology or information that is similar or comparable to LIBOR.

2. (b) With respect to any contract, security, or instrument to which this section applies, a determining person is authorized, but is not required, to select on or after the occurrence of a LIBOR discontinuance event the recommended benchmark replacement as the benchmark replacement for the contract, security, or instrument. A selection of the recommended benchmark replacement under this section must be:

   1. (1) irrevocable;

   2. (2) made by the earlier of:

      1. (A) the LIBOR replacement date; or
      2. (B) the latest date for selecting a benchmark replacement under the terms of the contract, security, or instrument; and
   3. (3) used in any determination of the benchmark that is made under or with respect to the contract, security, or instrument on or after the LIBOR replacement date.

As added by P.L.67-2022, SEC.1.