On April 6, Governor Andrew Cuomo of New York, signed AB164B, into law. The bill, supported by SFA and introduced with language provided by the ARRC, requires the use of the benchmark replacement recommended by the Federal Reserve, the New York Fed, or the ARRC where contract language is silent, or the contract’s fallback provisions prescribe the use of LIBOR. Where the fallback conditions are discretionary, the proposed legislation’s safe harbor is intended to encourage the selection of the recommended benchmark replacement. SFA was an early advocate in urging New York to consider the ARRC proposal and has called for federal legislation to ease LIBOR’s transition.
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