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House Passes LIBOR Legislation; CREFC Urges Swift Senate Passage
The House of Representatives late Wednesday afternoon passed the ‘‘Adjustable Interest Rate (LIBOR) Act of 2021,” H.R. 4616, by a 415- 9 margin. Rep. Brad Sherman (D-CA) is the lead sponsor of the bipartisan bill.
The legislation, supported by CREFC and other National Real Estate Organizations (NREOs), establishes a clear and uniform process to replace LIBOR in existing contracts (known as tough legacy contracts) whose terms do not provide for a LIBOR replacement rate. The legislation does not affect the ability of parties to use any appropriate benchmark rate in new contracts.
“CREFC applauds the House’s action and thanks Rep. Sherman for leading the bipartisan effort to solve this important piece of the LIBOR transition,” Lisa Pendergast, CREFC’s Executive Director said in a statement. “Federal legislation gives more certainty for everyone in the market, and we urge the Senate to act swiftly to send the legislation to the President’s desk.”
- ◦Policy/Gov't
