{"format":1,"id":"117-hr-4616","congress":117,"number":"H.R. 4616","kind":"bill","group":"bills","title":"Adjustable Interest Rate (LIBOR) Act of 2021","title_source":"Short Title(s) as Passed House","official_title":"To deem certain references to LIBOR as referring to a replacement benchmark rate upon the occurrence of certain events affecting LIBOR, and for other purposes.","titles":[{"type":"Official Title as Introduced","title":"To deem certain references to LIBOR as referring to a replacement benchmark rate upon the occurrence of certain events affecting LIBOR, and for other purposes."},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"Adjustable Interest Rate (LIBOR) Act of 2021"},{"type":"Display Title","title":"Adjustable Interest Rate (LIBOR) Act of 2021"},{"type":"Short Title(s) as Passed House","title":"Adjustable Interest Rate (LIBOR) Act of 2021"},{"type":"Short Title(s) as Reported to House","title":"Adjustable Interest Rate (LIBOR) Act of 2021"},{"type":"Short Title(s) as Introduced","title":"Adjustable Interest Rate (LIBOR) Act of 2021"}],"outcome":"passed_house","law_number":null,"introduced":"2021-07-22","chambers":{"house":{"status":"roll_call","date":"2021-12-08","vote":{"id":"117-2021-h407","question":"On Motion to Suspend the Rules and Pass, as Amended","title":"Adjustable Interest Rate (LIBOR) Act","result":"Passed","yea":415,"nay":9,"present":0,"not_voting":9,"source":"https://clerk.house.gov/evs/2021/roll407.xml"}},"senate":{"status":"na","date":null,"vote":null}},"president":{"status":"na","date":null},"vice_president_tie_breaker":null,"latest_action":{"text":"Committee on Banking, Housing, and Urban Affairs. Hearings held.","date":"2022-03-03"},"nominees":null,"amendments":[],"other_votes":[],"crs_summary":{"date":"2021-12-08","stage":"Passed House","blocks":[{"k":"h","t":"Adjustable Interest Rate (LIBOR) Act of 2021"},{"k":"p","t":"This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations."},{"k":"p","t":"In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition."}],"words":161},"summary":{"main_subject":{"text":"Provides for replacing U.S. dollar LIBOR with a SOFR-based benchmark rate selected by the Board of Governors of the Federal Reserve System in existing contracts that lack a defined replacement, and sets legal rules for that replacement.","cites":[{"label":"Sec. 3","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#HB0388CC146E547738E73458FA38A9CC9"},{"label":"Sec. 4","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#H76FBDACF99A04232B0495B290A549482"},{"label":"Sec. 5","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#H2A640EA419FF48FF8B2782A2E7A3B7DF"}]},"core_areas":["Replacement of LIBOR in existing contracts","Legal protections for use of the Board-selected replacement rate","Federal law superseding State and local laws on benchmark replacement","Special allowance payment calculation for loans under the Higher Education Act of 1965"],"what_it_does":[{"text":"Makes the Board-Selected Benchmark Replacement the replacement rate, by operation of law, on the LIBOR Replacement Date for LIBOR contracts that have no fallback provisions or whose fallback provisions identify neither a specific replacement nor a Determining Person.","cite":{"label":"Sec. 4","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#H76FBDACF99A04232B0495B290A549482"}},{"text":"Defines the Board-Selected Benchmark Replacement as a replacement identified by the Board that is based on SOFR, and defines the LIBOR Replacement Date as the first London banking day after June 30, 2023, unless the Board determines a different date.","cite":{"label":"Sec. 3","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#HB0388CC146E547738E73458FA38A9CC9"}},{"text":"Treats as null and void any fallback reference to a replacement rate based on a LIBOR value (except to account for the difference from LIBOR) or to a requirement that a person other than a Benchmark Administrator poll for interbank lending or deposit rate quotes.","cite":{"label":"Sec. 4","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#H76FBDACF99A04232B0495B290A549482"}},{"text":"Bars claims, requests for equitable relief and damages liability against any person arising from selecting or using a Board-Selected Benchmark Replacement or implementing conforming changes, while leaving contract terms not affected by the Act and duties to correct servicing or ministerial errors in place.","cite":{"label":"Sec. 5","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#H2A640EA419FF48FF8B2782A2E7A3B7DF"}},{"text":"Supersedes the laws of any State, the District of Columbia, or any territory or possession insofar as they provide for the selection or use of a Benchmark Replacement or related conforming changes.","cite":{"label":"Sec. 6","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#HB43DE8FE511242258B618C88571289D2"}},{"text":"Amends section 438(b)(2)(I) of the Higher Education Act of 1965 to calculate the special allowance payment for certain loans using the 30-day Average SOFR plus a Tenor Spread Adjustment of 0.11448 percent in place of 1-month LIBOR.","cite":{"label":"Sec. 9","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#H48C4EDC65E554694B0202A6CA5E4C431"}}],"unexpected":[{"category":"selective_carve_out","items":[{"cite":{"label":"Sec. 9","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh#H48C4EDC65E554694B0202A6CA5E4C431"},"heading":"Revised calculation rule to address instances where 1-month USD LIBOR ceases or is non-representative","effect":"Amends the Higher Education Act special allowance formula to use a SOFR-based rate, and lets holders who elect it apply the rate to specified loan portfolios by separate notices with different effective dates.","amount":null,"quote":"may elect to apply the rate described in subclause (II) to specified loan portfolios established for financing purposes by separate notices with different effective dates"}]}],"version":{"type":"Engrossed in House","date":"2021-12-08","rule":"passed","href":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-15","approved_by":"checks"},"sources":{"congress_gov":"https://www.congress.gov/bill/117th-congress/house-bill/4616","text":"https://www.congress.gov/bill/117th-congress/house-bill/4616/text"},"card":{"image":"card/item/117-hr-4616.png","v":"6795af5a6a5a","alt":"Votes on Record. H.R. 4616, 117th Congress: Adjustable Interest Rate (LIBOR) Act of 2021. House: 415 Yea, 9 Nay. Outcome: Passed House, 8 Dec 2021."}}