Samuel PC Brand

In March of 2022, the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) was signed into law. The purpose of the LIBOR Act was to provide a uniform federal solution for transitioning existing contracts based on the London Interbank Offered Rate (“LIBOR”) to an alternative replacement rate before June 30, 2023, at which point LIBOR will cease to be published.

In March of 2022, the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) was signed into law. The purpose of the LIBOR Act was to provide a uniform federal solution for transitioning existing contracts based on the London Interbank Offered Rate (“LIBOR”) to an alternative replacement rate before June 30, 2023, at which point LIBOR will cease to be published.

The London Interbank Offered Rate (“LIBOR”) has been the dominant interest rate benchmark around the globe for some time. Following the financial crisis of 2007-2009 and numerous LIBOR manipulation scandals, the U.K. Financial Conduct Authority (“FCA”), which regulates the administration of LIBOR, announced in 2017 that it would facilitate a transition away from LIBOR after 2021 and its publication would cease altogether after June 30, 2023.