ARRC Commends Signing of New York State LIBOR Legislation
The Alternative Reference Rates Committee ("ARRC") commended New York State Governor Andrew Cuomo's signing of legislation meant to reduce potential disputes and market disruption associated with the transition away from the London Inter-Bank Offered Rate ("LIBOR").
The ARRC first introduced the bill last year to address legacy contracts that will reach maturity without effective fallbacks after mid-2023, at which point LIBOR will be discontinued. As previously noted, many of the financial products and contracts referencing LIBOR are governed by New York law. This legislation is intended to decrease the burden on New York's courts resulting from legal uncertainty associated with the transition from LIBOR.
(Cadwalader, Wickersham & Taft LLP serves as counsel to the ARRC and helped to draft New York State Senate Bill 297B/Assembly Bill 164B.)
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