Financial institutions around the world are addressing the
probable cessation of "LIBOR" interest rates before 2022
by, among other things, developing language designed to substitute
an industry-approved successor rate (most likely to be based on the
"Secured Overnight Financing Rate," or "SOFR,"
for the U.S. dollar) seamlessly in the event of such a cessation.
The Alternative Reference Rates Committee ("ARRC") has
recently released its final "fallback language"
recommendations for USD-denominated securitizations
("Securitizations") and bilateral business loans
("Bilateral Loans"). While the recommended language is
"final," it leans heavily on future market developments
to provide fundamental calculation conventions. We would expect to
see the recommendations for Bilateral Loans to be implemented
relatively quickly for new and amended loans, but it remains to be
seen to what extent the "Hedged Loan Approach" will be
adopted in the market. The recommended language for
