senate Bill S297

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

Current Bill Status Via A164 - Signed by Governor


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

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Actions

view actions (14)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 06, 2021 signed chap.94
Apr 01, 2021 delivered to governor
Mar 24, 2021 returned to assembly
passed senate
3rd reading cal.523
substituted for s297b
Mar 24, 2021 substituted by a164b
Mar 11, 2021 advanced to third reading
Mar 10, 2021 2nd report cal.
Mar 09, 2021 amended (t) 297b
Mar 09, 2021 1st report cal.523
Mar 01, 2021 print number 297a
Mar 01, 2021 amend (t) and recommit to judiciary
Jan 06, 2021 referred to judiciary

S297 - Details

See Assembly Version of this Bill:
A164
Law Section:
Uniform Commercial Code
Laws Affected:
Add Art 12 §§12-101 - 12-104, UCC
Versions Introduced in 2019-2020 Legislative Session:
S9070, A11098

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.

S297 - Sponsor Memo

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

S297A - Details

See Assembly Version of this Bill:
A164
Law Section:
Uniform Commercial Code
Laws Affected:
Add Art 12 §§12-101 - 12-104, UCC
Versions Introduced in 2019-2020 Legislative Session:
S9070, A11098

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.

S297A - Sponsor Memo

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

S297B (ACTIVE) - Details

See Assembly Version of this Bill:
A164
Law Section:
Uniform Commercial Code
Laws Affected:
Add Art 12 §§12-101 - 12-104, UCC
Versions Introduced in 2019-2020 Legislative Session:
S9070, A11098

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.

S297B (ACTIVE) - Sponsor Memo

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

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