Senate Bill S297B

Signed By Governor
2021-2022 Legislative Session

Relates to the discontinuance of LIBOR as the benchmark for short-term interest rates

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A164 - Signed by Governor


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions
Votes

Bill Amendments

2021-S297 - Details

See Assembly Version of this Bill:
A164
Law Section:
Uniform Commercial Code
Laws Affected:
Add Art 18-C §§18-400 - 18-403, Gen Ob L
Versions Introduced in 2019-2020 Legislative Session:
S9070, A11098

2021-S297 - Summary

Enacts provisions relating to the discontinuance of LIBOR (the London interbank offered rate); prohibits parties from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of LIBOR or the use of a replacement; establishes that the replacement is a commercially reasonable substitute for and a commercially substantial equivalent to LIBOR; provides a safe harbor from litigation for the use of the recommended benchmark replacement.

2021-S297 - Sponsor Memo

2021-S297 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    297
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the uniform commercial code, in relation to  the  effect
   of  a  LIBOR  discontinuance  event on contracts, securities and other
   agreements

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  uniform  commercial  code is amended by adding a new
 article 12 to read as follows:
                                ARTICLE 12
                           LIBOR DISCONTINUANCE
 SECTION 12-101. DEFINITIONS.
         12-102. EFFECT OF LIBOR DISCONTINUANCE.
         12-103. CONTINUITY OF CONTRACT AND SAFE HARBOR.
         12-104. SEVERABILITY.
 SECTION 12-101. DEFINITIONS.
   AS USED IN THIS ARTICLE THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (A)  "LIBOR" SHALL MEAN, FOR PURPOSES OF THE APPLICATION OF THIS ARTI-
 CLE TO ANY PARTICULAR CONTRACT,  SECURITY  OR  INSTRUMENT,  U.S.  DOLLAR
 LIBOR  (FORMERLY KNOWN AS THE LONDON INTERBANK OFFERED RATE) AS ADMINIS-
 TERED BY ICE BENCHMARK ADMINISTRATION LIMITED (OR ANY  SUCCESSOR  THERE-
 OF).
   (B)  "LIBOR  DISCONTINUANCE EVENT" SHALL MEAN THE EARLIEST TO OCCUR OF
 ANY OF THE FOLLOWING:
   (1) A PUBLIC STATEMENT OR PUBLICATION OF INFORMATION BY OR  ON  BEHALF
 OF  THE  ADMINISTRATOR  OF  LIBOR ANNOUNCING THAT SUCH ADMINISTRATOR HAS
 CEASED OR WILL CEASE TO  PROVIDE  LIBOR,  PERMANENTLY  OR  INDEFINITELY,
 PROVIDED  THAT, AT THE TIME OF THE STATEMENT OR PUBLICATION, THERE IS NO
 SUCCESSOR ADMINISTRATOR THAT WILL CONTINUE TO PROVIDE LIBOR;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

2021-S297A - Details

See Assembly Version of this Bill:
A164
Law Section:
Uniform Commercial Code
Laws Affected:
Add Art 18-C §§18-400 - 18-403, Gen Ob L
Versions Introduced in 2019-2020 Legislative Session:
S9070, A11098

2021-S297A - Summary

Enacts provisions relating to the discontinuance of LIBOR (the London interbank offered rate); prohibits parties from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of LIBOR or the use of a replacement; establishes that the replacement is a commercially reasonable substitute for and a commercially substantial equivalent to LIBOR; provides a safe harbor from litigation for the use of the recommended benchmark replacement.

2021-S297A - Sponsor Memo

2021-S297A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  297--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN  ACT to amend the general obligations law, in relation to the discon-
   tinuance of the London interbank offered rate (Part PP)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
                                  PART PP
 
   Section  1.  The  general  obligations  law is amended by adding a new
 article 18-C to read as follows:
                               ARTICLE 18-C
                           LIBOR DISCONTINUANCE
 SECTION 18-400. DEFINITIONS.
         18-401. EFFECT OF LIBOR DISCONTINUANCE ON AGREEMENTS.
         18-402. CONTINUITY OF CONTRACT AND SAFE HARBOR.
         18-403. SEVERABILITY.
   § 18-400. DEFINITIONS. AS USED IN THIS  ARTICLE  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "LIBOR" SHALL MEAN, FOR PURPOSES OF THE APPLICATION OF THIS ARTICLE
 TO  ANY  PARTICULAR  CONTRACT, SECURITY OR INSTRUMENT, U.S. DOLLAR LIBOR
 (FORMERLY KNOWN AS THE LONDON INTERBANK OFFERED RATE) AS ADMINISTERED BY
 ICE BENCHMARK ADMINISTRATION LIMITED (OR ANY  PREDECESSOR  OR  SUCCESSOR
 THEREOF),  OR  ANY  TENOR THEREOF, AS APPLICABLE, THAT IS USED IN MAKING
 ANY CALCULATION OR DETERMINATION THEREUNDER.
   2. "LIBOR DISCONTINUANCE EVENT" SHALL MEAN THE EARLIEST  TO  OCCUR  OF
 ANY OF THE FOLLOWING:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03775-02-1
              

co-Sponsors

2021-S297B (ACTIVE) - Details

See Assembly Version of this Bill:
A164
Law Section:
Uniform Commercial Code
Laws Affected:
Add Art 18-C §§18-400 - 18-403, Gen Ob L
Versions Introduced in 2019-2020 Legislative Session:
S9070, A11098

2021-S297B (ACTIVE) - Summary

Enacts provisions relating to the discontinuance of LIBOR (the London interbank offered rate); prohibits parties from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of LIBOR or the use of a replacement; establishes that the replacement is a commercially reasonable substitute for and a commercially substantial equivalent to LIBOR; provides a safe harbor from litigation for the use of the recommended benchmark replacement.

2021-S297B (ACTIVE) - Sponsor Memo

2021-S297B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  297--B
     Cal. No. 523
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee -- reported favorably from said committee, ordered
   to first report, amended on first report, ordered to a  second  report
   and  ordered  reprinted,  retaining  its  place in the order of second
   report
 
 AN ACT to amend the general obligations law, in relation to the  discon-
   tinuance of the London interbank offered rate
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general obligations law is  amended  by  adding  a  new
 article 18-C to read as follows:
                               ARTICLE 18-C
                           LIBOR DISCONTINUANCE
 SECTION 18-400. DEFINITIONS.
         18-401. EFFECT OF LIBOR DISCONTINUANCE ON AGREEMENTS.
         18-402. CONTINUITY OF CONTRACT AND SAFE HARBOR.
         18-403. SEVERABILITY.
   §  18-400.  DEFINITIONS.  AS  USED IN THIS ARTICLE THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "LIBOR" SHALL MEAN, FOR PURPOSES OF THE APPLICATION OF THIS ARTICLE
 TO ANY PARTICULAR CONTRACT, SECURITY OR INSTRUMENT,  U.S.  DOLLAR  LIBOR
 (FORMERLY KNOWN AS THE LONDON INTERBANK OFFERED RATE) AS ADMINISTERED BY
 ICE  BENCHMARK  ADMINISTRATION  LIMITED (OR ANY PREDECESSOR OR SUCCESSOR
 THEREOF), OR ANY TENOR THEREOF, AS APPLICABLE, THAT IS  USED  IN  MAKING
 ANY CALCULATION OR DETERMINATION THEREUNDER.
   2.  "LIBOR  DISCONTINUANCE  EVENT" SHALL MEAN THE EARLIEST TO OCCUR OF
 ANY OF THE FOLLOWING:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.