Title 12 — Banks and Banking
Chapter 55 — Adjustable Interest Rate (libor)
§ 5802. Definitions
Statutory text
In this chapter:
Benchmark
The term “benchmark” means an index of interest rates or dividend rates that is used, in whole or in part, as the basis of or as a reference for calculating or determining any valuation, payment, or other measurement.
Benchmark administrator
The term “benchmark administrator” means a person that publishes a benchmark for use by third parties.
Benchmark replacement
The term “benchmark replacement” means a benchmark, or an interest rate or dividend rate (which may or may not be based in whole or in part on a prior setting of LIBOR), to replace LIBOR or any interest rate or dividend rate based on LIBOR, whether on a temporary, permanent, or indefinite basis, under or with respect to a LIBOR contract.
Benchmark replacement conforming changes
The term “benchmark replacement conforming changes” means any technical, administrative, or operational changes, alterations, or modifications that—
the Board determines, in its discretion, would address 1 or more issues affecting the implementation, administration, and calculation of the Board-selected benchmark replacement in LIBOR contracts; or
solely with respect to a LIBOR contract that is not a consumer loan, in the reasonable judgment of a calculating person, are otherwise necessary or appropriate to permit the implementation, administration, and calculation of the Board-selected benchmark replacement under or with respect to a LIBOR contract after giving due consideration to any benchmark replacement conforming changes under subparagraph (A).
Board
The term “Board” means the Board of Governors of the Federal Reserve System.
Board-selected benchmark replacement
The term “Board-selected benchmark replacement” means a benchmark replacement identified by the Board that is based on SOFR, including any tenor spread adjustment pursuant to section 5803(e) of this title.
Calculating person
The term “calculating person” means, with respect to any LIBOR contract, any person, including the determining person, responsible for calculating or determining any valuation, payment, or other measurement based on a benchmark.
Consumer; credit
The terms “consumer” and “credit” have the meanings given the terms in section 1602 of title 15.
Consumer loan
The term “consumer loan” means a consumer credit transaction.
Determining person
The term “determining person” means, with respect to any LIBOR contract, any person with the authority, right, or obligation, including on a temporary basis (as identified by the LIBOR contract or by the governing law of the LIBOR contract, as appropriate) to determine a benchmark replacement.
Fallback provisions
The term “fallback provisions” means terms in a LIBOR contract for determining a benchmark replacement, including any terms relating to the date on which the benchmark replacement becomes effective.
IBOR
The term “IBOR” means LIBOR, any tenor of non-U.S. dollar currency rates formerly known as the London interbank offered rate as administered by ICE Benchmark Administration Limited (or any predecessor or successor administrator thereof), and any other interbank offered rates that are expected to cease.
IBOR benchmark replacement
The term “IBOR benchmark replacement” means a benchmark, or an interest rate or dividend rate (which may or may not be based in whole or in part on a prior setting of an IBOR), to replace an IBOR or any interest rate or dividend rate based on an IBOR, whether on a temporary, permanent, or indefinite basis, under or with respect to an IBOR contract.
IBOR contract
The term “IBOR contract” means any contract, agreement, indenture, organizational document, guarantee, mortgage, deed of trust, lease, security (whether representing debt or equity, including any interest in a corporation, a partnership, or a limited liability company), instrument, or other obligation or asset that, by its terms, continues in any way to use an IBOR as a benchmark.
LIBOR
The term “LIBOR”—
means the overnight and 1-, 3-, 6-, and 12-month tenors of U.S. dollar LIBOR (formerly known as the London interbank offered rate) as administered by ICE Benchmark Administration Limited (or any predecessor or successor administrator thereof); and
does not include the 1-week or 2-month tenors of U.S. dollar LIBOR.
LIBOR contract
The term “LIBOR contract” means any contract, agreement, indenture, organizational document, guarantee, mortgage, deed of trust, lease, security (whether representing debt or equity, including any interest in a corporation, a partnership, or a limited liability company), instrument, or other obligation or asset that, by its terms, uses LIBOR as a benchmark.
LIBOR replacement date
The term “LIBOR replacement date” means the first London banking day after , unless the Board determines that any LIBOR tenor will cease to be published or cease to be representative on a different date.
Security
The term “security” has the meaning given the term in section 77b(a) of title 15.
SOFR
The term “SOFR” means the Secured Overnight Financing Rate published by the Federal Reserve Bank of New York (or a successor administrator).
Tenor spread adjustment
The term “tenor spread adjustment” means—
0.00644 percent for overnight LIBOR;
0.11448 percent for 1-month LIBOR;
0.26161 percent for 3-month LIBOR;
0.42826 percent for 6-month LIBOR; and
0.71513 percent for 12-month LIBOR.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Department of Commerce Appropriations Act, 2022
Pub. L. 117–103 div. U § 103 · 136 Stat. 49
Enacted · 12 U.S.C. § 5802
(Pub. L. 117–103, div. U, § 103, Mar. 15, 2022, 136 Stat. 826.)
Source evidence
Code source credit
(Pub. L. 117–103, div. U, § 103, Mar. 15, 2022, 136 Stat. 826.)Enacted provision · exact public law section
Sec. 103. Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Department of Commerce in this Act may be transferred between such appropriations, but no such appropriation shall be increased by more than 10 percent by any such transfers: Provided, That any transfer pursuant to this section shall be treated as a reprogramming of funds under section 505 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section: Provided further, Notification. Time period. That the Secretary of Commerce shall notify the Committees on Appropriations at least 15 days in advance of the acquisition or disposal of any capital asset (including land, structures, and equipment) not specifically provided for in this Act or any other law appropriating funds for the Department of Commerce.
1 of 1 references resolved to an enrolled provision
Editorial Notes
References in Text
This chapter, referred to in text, was in the original “this division”, meaning div. U of Pub. L. 117–103, , 136 Stat. 825, known as the Adjustable Interest Rate (LIBOR) Act, which is classified principally to this chapter. For complete classification of div. U to the Code, see Short Title note set out under section 5801 of this title and Tables.