HB475 Alabama 2021 Session

Sponsors

Session

Regular Session 2021

Title

Financial transactions, contingencies provided if the London Interbank Offered Rate is discontinued, Secs. 5-28-1 to 5-28-5, inclusive, added

Description

<p class="bill_description"> This bill would enact provisions relating to the discontinuance of LIBOR, the London Interbank Offered Rate, a benchmark for short-term interest rates, discount rates, or dividend rates used in certain financial contracts</p><p class="bill_description"> This bill would prohibit parties to a contract, security, or instrument from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of LIBOR or the use of a replacement interest rate index for LIBOR</p><p class="bill_description"> This bill would also provide a safe harbor from litigation for the use of a recommended benchmark replacement</p><p class="bill_entitled_an_act"> Relating to financial transactions; to add Chapter 28, commencing with Section 5-28-1, to Title 5 of the Code of Alabama 1975; to provide that parties to a contract would be prohibited from refusing to perform contractual obligations or declaring a breach of contract as a result of the discontinuance of the London Interbank Offered Rate or the use of a replacement interest rate index that is a replacement interest rate index to LIBOR; to provide for replacement interest rate indexes to LIBOR; and to provide a safe harbor from litigation for the use of the recommended benchmark replacement. </p>

Subjects

Financial Institutions