Last Friday, March 6, the Alternative Reference Rates Committee (ARRC) released a legislative proposal that aims to address the absence of clear fallback language in existing LIBOR-based contracts. The proposal is currently under consideration in the New York State legislature as a significant portion of the financial products and agreements that reference LIBOR are governed by New York law. The legislative fix offered by the group is designed to ease transition by minimizing costly litigation risks by offering a safe harbor for contracts that convert based on industry-developed recommendations. If you would like to join SFA’s LIBOR Task Force, please contact the SFA Team.

Read more via AARC’s press release.