Adjustable Interest Rate (LIBOR) Act of 2021

Bill: 117-hr-4616
Sponsor: Rep. Sherman, Brad [D-CA-30]
Introduced: 2021-07-22 in the House
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital
Banking and financial institutions regulation
Civil actions and liability
Consumer credit
Contracts and agency
Credit and credit markets
Debt collection
Government lending and loan guarantees
Higher education
Interest, dividends, interest rates
Student aid and college costs
Tax administration and collection, taxpayers

Summary:
action_date: 2021-07-22
text: 

Adjustable Interest Rate (LIBOR) Act of 2021 

 
This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations. 
 
In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition. 
 
The bill also addresses the tax consequences of such a transition. Specifically, the selection or use of a replacement rate; the determination, implementation, or performance of related conforming changes to a contract; or other application of changes related to the transition shall not be treated as a sale, exchange, or other disposition of property for tax purposes.

action_date: 2021-12-07
text: 

Adjustable Interest Rate (LIBOR) Act of 2021 

 
This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations. 
 
In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition. 

action_date: 2021-12-08
text: 

Adjustable Interest Rate (LIBOR) Act of 2021 

 
This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations. 
 
In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition. 


Legislative actions:
action_date: 2022-03-03
text: Committee on Banking, Housing, and Urban Affairs. Hearings held.
action_date: 2021-12-09
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2021-12-08
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2021-12-08
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 415 - 9 (Roll no. 407). (text: CR H7479-7481)
action_date: 2021-12-08
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 415 - 9 (Roll no. 407).(text: CR H7479-7481)
action_date: 2021-12-08
text: Considered as unfinished business. (consideration: CR H7529-7530)
action_date: 2021-12-08
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2021-12-08
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 4616.
action_date: 2021-12-08
text: Considered under suspension of the rules. (consideration: CR H7479-7486)
action_date: 2021-12-08
text: Mr. Sherman moved to suspend the rules and pass the bill, as amended.
action_date: 2021-12-07
text: Placed on the Union Calendar, Calendar No. 147.
action_date: 2021-12-07
text: Committee on Education and Labor discharged.
action_date: 2021-12-07
text: Committee on Education and Labor discharged.
action_date: 2021-12-07
text: Committee on Ways and Means discharged.
action_date: 2021-12-07
text: Committee on Ways and Means discharged.
action_date: 2021-12-07
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 117-206, Part I.
action_date: 2021-12-07
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 117-206, Part I.
action_date: 2021-07-29
text: Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.
action_date: 2021-07-29
text: Committee Consideration and Mark-up Session Held.
action_date: 2021-07-28
text: Committee Consideration and Mark-up Session Held.
action_date: 2021-07-22
text: Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-07-22
text: Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-07-22
text: Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-07-22
text: Introduced in House
action_date: 2021-07-22
text: Introduced in House