LIBOR Discontinuance Legislation Passage

The New York City Bar Association supported and now applauds the New York State Legislature’s passage of A.164-B/S.297-B, which addresses the cessation of U.S. Dollar LIBOR. The paradigm shift affects potentially trillions of dollars of financial contracts. This statute addresses an important need, where contracts cannot be practically amended or are otherwise not amended by the parties in time. It mitigates these issues while preserving parties’ ability to enter into their own contract modifications for the purpose of addressing the cessation of LIBOR. We commend Senator Thomas and Assembly Member Zebrowski for their leadership introducing this bill, and urge Governor Cuomo to sign it into law.

Led by the City Bar’s LIBOR Replacement Legislation Working Group, this bill was endorsed by nine City Bar committees:  Futures and Derivatives Regulation; Investment Management Regulation; Securities Regulation; Structured Finance; Banking Law; Commercial Law and Uniform State Laws; Real Property Law; In-House Counsel; and Consumer Affairs.

The City Bar’s report in support of this legislation can be read here: https://bit.ly/3qBRCXP