ARRC Recommends Replacement Benchmarks For Certain 1-Week And 2-Month USD LIBOR Contracts

The Alternative Reference Rates Committee, acting as the "Relevant Recommending Body" under LIBOR legislation enacted in New York and Alabama, officially selected and recommended replacement benchmarks, based on the Secured Overnight Financing Rate, to replace 1-week and 2-month U.S. dollar LIBOR in contracts that are within the scope of these two state statutes. The ARRC also selected and recommended spread adjustments and conforming changes to accompany these replacement benchmarks.

These selections and recommendations apply to New York or Alabama law-governed contracts that lack fallbacks for LIBOR or that elect to take advantage of the statutes' optional safe harbor. The selections and recommendations vary by product type and are broken down by category, including asset-backed securities, business loans, consumer products and floating rate notes. In addition to these formal selections and recommendations, the ARRC also published a set of FAQs that clarifies the