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Interest Rate Changes: New Rules for LIBOR Contracts

This act establishes clear rules for replacing the LIBOR interest rate in existing contracts to prevent issues after its discontinuation. It aims to ensure financial stability and protect citizens from ambiguities in loan agreements and other obligations referencing this rate. Even if your contract doesn't specify what happens next, the system will automatically designate a new, secure rate.
Key points
Standardizing the process of replacing LIBOR in contracts nationwide, reducing the risk of legal disputes.
Introducing a new default interest rate (SOFR) for contracts that lack a clearly defined LIBOR replacement.
Consumer protection: consumer loans will have a special, gradual transition to the new rate to avoid sudden payment changes.
Ensuring contract continuity: the rate change will not be grounds for contract termination or alteration of terms beyond the interest rate itself.
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Additional Information
Print number: 117_S_3779
Sponsor: Sen. Tester, Jon [D-MT]
Process start date: 2022-03-08
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Adjustable Interest Rate (LIBOR) Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_3779.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-03-08.

What are the main provisions?

Key points include:

  • Standardizing the process of replacing LIBOR in contracts nationwide, reducing the risk of legal disputes.
  • Introducing a new default interest rate (SOFR) for contracts that lack a clearly defined LIBOR replacement.
  • Consumer protection: consumer loans will have a special, gradual transition to the new rate to avoid sudden payment changes.
  • Ensuring contract continuity: the rate change will not be grounds for contract termination or alteration of terms beyond the interest rate itself.
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

Who is the primary sponsor?

The primary sponsor is Sen. Tester, Jon [D-MT].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy Courts and Law