SIFMA issued the following statement from president and CEO Kenneth E. Bentsen, Jr. on the passage of LIBOR legislation by the New York State Legislature:

“We are pleased the New York State Legislature passed the model law for New York to help transition ‘tough legacy’ contracts that are difficult or practically impossible to amend.  SIFMA, as a member of the Alternative Rates Reference Committee (ARRC), helped develop and championed this legislation to facilitate a smooth transition from LIBOR to an alternative reference rate, which is a top priority for the financial services industry.  SIFMA supports market, legislative and regulatory efforts to ensure a smooth transition while avoiding market disruption and legal uncertainty, and to that end we encourage Congress to pass a federal law similar to the one passed in New York to address these issues on a national level.”

With #LIBOR going away, we are pleased the NYS Legislature passed a law to help transition ‘tough legacy’ contracts that are difficult or practically impossible to amend. We encourage Congress to address these issues on a national level. More: https://t.co/yxR5SE6VNp #ARRC #SOFR pic.twitter.com/U7UMk8Ihtg

— SIFMA (@SIFMA) March 25, 2021

Source: SIFMA

New York City Bar Applauds Passage of LIBOR Discontinuance Legislation

The New York City Bar Association supported and now applauds the New York State Legislature’s passage of A.164-B/S.297-B, which addresses the cessation of U.S. Dollar LIBOR. The paradigm shift affects potentially trillions of dollars of financial contracts. This statute addresses an important need, where contracts cannot be practically amended or are otherwise not amended by the parties in time. It mitigates these issues while preserving parties’ ability to enter into their own contract modifications for the purpose of addressing the cessation of LIBOR. We commend Senator Thomas and Assembly Member Zebrowski for their leadership introducing this bill, and urge Governor Cuomo to sign it into law.

Led by the City Bar’s LIBOR Replacement Legislation Working Group, this bill was endorsed by nine City Bar committees: Futures and Derivatives Regulation; Investment Management Regulation; Securities Regulation; Structured Finance; Banking Law; Commercial Law and Uniform State Laws; Real Property Law; In-House Counsel; and Consumer Affairs.

The City Bar’s report in support of this legislation can be read here: https://bit.ly/3qBRCXP

Source: New York City Bar Association