The ARRC welcomed news that the Consolidated Appropriations Act, 2022, which contains critical legislation related to the transition away from U.S. dollar (USD) LIBOR, was signed into law today. The legislation will minimize legal and operational risks and adverse economic impacts associated with the transition—providing greater certainty to a diverse array of corporate borrowers and lenders, as well as to retail bondholders and consumers, whose student loans, mortgages, and investment accounts it will protect from disruption.

The ARRC as "Relevant Recommending Body" under New York and Alabama State LIBOR Legislation (State LIBOR Legislation), released a statement selecting and recommending forms of the SOFR, along with associated spread adjustments and conforming changes, to replace references to 1-week and 2-month U.S. dollar (USD) LIBOR in certain contracts affected by the State LIBOR Legislation. More information on the New York State legislation which informed these recommendations can be found in the FAQs also released today.

The ARRC applauded New York State Governor Andrew Cuomo for signing the LIBOR legislation into law — a step that will help to minimize legal uncertainty and adverse economic impacts associated with the transition from LIBOR. Initially presented by the ARRC last year, this new law addresses the issue of legacy contracts that mature after mid-2023 and do not have effective fallbacks.

The ARRC welcomed action by the New York State Legislature to reduce risks associated with the transition away from USD LIBOR by passing Senate Bill 297B/Assembly Bill 164B. This legislation will be crucial in minimizing legal uncertainty and adverse economic impacts associated with the transition—providing greater certainty to investors, businesses, and consumers as the financial system moves away from LIBOR.

The ARRC posted an updated version of its proposed legislation which was included in Governor Cuomo's 30-day amendments to the New York State's Executive Budget to reflect certain technical amendments. This amends the draft  legislation language that was originally included in the New York State Executive Budget and first released by the ARRC on March 6, 2020.

The proposal is intended to minimize legal uncertainty and adverse economic impacts associated with the LIBOR transition. On December 16, 2020, a letter signed by several ARRC members and other firms and associations was posted to the SIFMA website, expressing support for the ARRC's draft legislative approach.

To promote broader engagement on the proposal, the ARRC released a webinar in April 2020 that provided an in-depth overview of the draft legislation.  The ARRC also set out key legislative principles related to its work on legislative solutions which is reflected in Attachment 1 of the October 21, 2020 ARRC meeting minutes.

To promote broader engagement on the proposal, the ARRC released a webinar in April 2020 that provided an in-depth overview of the draft legislation. The ARRC also set out key legislative principles related to its work on legislative solutions which is reflected in Attachment 1 of the October 21, 2020 ARRC meeting minutes.