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LIBOR Transition: Ensuring Financial Contract Stability and Student Loan Adjustments

This Act aims to ensure a smooth transition from the LIBOR interest rate to a new benchmark rate (SOFR) in existing financial contracts, such as mortgages and student loans. This prevents legal chaos and lawsuits that could arise from LIBOR's discontinuation, protecting the stability of your financial obligations.
Key points
Automatic replacement of LIBOR with SOFR in contracts lacking clear fallback provisions upon LIBOR's discontinuation.
Prevention of lawsuits due to ambiguities in contracts after LIBOR ceases to be used.
Introduction of a new interest calculation method for certain student loans, potentially affecting repayment amounts.
Assurance that changes will not negatively impact your right to receive payments or the terms of contracts already containing alternative solutions.
article Official text account_balance Process page
VOTING RESULTS
2021-12-08
98%
For 415
Against 9
Abstain 0
Full voting results open_in_new
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_4616
Sponsor: Rep. Sherman, Brad [D-CA-30]
Process start date: 2021-07-22
Voting date: 2021-12-08
Meeting no: 1
Voting no: 407
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Adjustable Interest Rate (LIBOR) Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4616.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-07-22.

What are the main provisions?

Key points include:

  • Automatic replacement of LIBOR with SOFR in contracts lacking clear fallback provisions upon LIBOR's discontinuation.
  • Prevention of lawsuits due to ambiguities in contracts after LIBOR ceases to be used.
  • Introduction of a new interest calculation method for certain student loans, potentially affecting repayment amounts.
  • Assurance that changes will not negatively impact your right to receive payments or the terms of contracts already containing alternative solutions.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Where is the official voting record?

The official roll call vote is recorded at: voting record

Who is the primary sponsor?

The primary sponsor is Rep. Sherman, Brad [D-CA-30].

What is the latest detailed status?

The latest detailed status is: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 415 - 9 (Roll no. 407). (text: CR H7479-7481)

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy Courts and Law Education