1. (a) Findings Congress finds that—

   1. (1) LIBOR is used as a benchmark rate in more than $200,000,000,000,000 worth of contracts worldwide;
   2. (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. (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.

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

   1. (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. (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. (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. (4) to address LIBOR references in Federal law.

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

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’.”