§ 5803. LIBOR contracts

• (a) On the LIBOR replacement date, the Board-selected benchmark replacement shall be the benchmark replacement for any LIBOR contract that, after giving any effect to subsection (b)—
  • (1) contains no fallback provisions; or
  • (2) contains fallback provisions that identify neither—
    • (A) a specific benchmark replacement; nor
    • (B) a determining person.
• (b) On the LIBOR replacement date, any reference in the fallback provisions of a LIBOR contract to—
  • (1) a benchmark replacement that is based in any way on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement; or
  • (2) a requirement that a person (other than a benchmark administrator) conduct a poll, survey, or inquiries for quotes or information concerning interbank lending or deposit rates;
• (c)
  • (1) Subject to subsection (f)(2), a determining person may select the Board-selected benchmark replacement as the benchmark replacement.
  • (2) Any selection by a determining person of the Board-selected benchmark replacement pursuant to paragraph (1) shall be—
    • (A) irrevocable;
    • (B) made by the earlier of the LIBOR replacement date and the latest date for selecting a benchmark replacement according to the terms of the LIBOR contract; and
    • (C) used in any determinations of the benchmark under or with respect to the LIBOR contract occurring on and after the LIBOR replacement date.
  • (3) If a determining person does not select a benchmark replacement by the date specified in paragraph (2)(B), the Board-selected benchmark replacement, on and after the LIBOR replacement date, shall be the benchmark replacement for the LIBOR contract.
• (d)
  • (1) If the Board-selected benchmark replacement becomes the benchmark replacement for a LIBOR contract pursuant to subsection (a) or (c), all benchmark replacement conforming changes shall become an integral part of the LIBOR contract.
  • (2) A calculating person shall not be required to obtain consent from any other person prior to the adoption of benchmark replacement conforming changes.
• (e)
  • (1) Except as provided in paragraph (2), on the LIBOR replacement date, the Board shall adjust the Board-selected benchmark replacement for each category of LIBOR contract that the Board may identify to include the relevant tenor spread adjustment.
  • (2) For LIBOR contracts that are consumer loans, the Board shall adjust the Board-selected benchmark replacement as follows:
    • (A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.
    • (B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.
• (f) Nothing in this chapter may be construed to alter or impair—
  • (1) any written agreement specifying that a LIBOR contract shall not be subject to this chapter;
  • (2) except as provided in subsection (b), any LIBOR contract that contains fallback provisions that identify a benchmark replacement that is not based in any way on any LIBOR value (including the prime rate or the effective Federal funds rate);
  • (3) except as provided in subsection (b) or (c)(3), any LIBOR contract subject to subsection (c)(1) as to which a determining person does not elect to use a Board-selected benchmark replacement pursuant to that subsection;
  • (4) the application to a Board-selected benchmark replacement of any cap, floor, modifier, or spread adjustment to which LIBOR had been subject pursuant to the terms of a LIBOR contract;
  • (5) any provision of Federal consumer financial law that—
    • (A) requires creditors to notify borrowers regarding a change-in-terms; or
    • (B) governs the reevaluation of rate increases on credit card accounts under open-ended (not home-secured) consumer credit plans; or
  • (6) except as provided in section 5804(c) of this title , the rights or obligations of any person, or the authorities of any agency, under Federal consumer financial law, as defined in section 5481 of this title .