ARRC Releases NY Law Proposal To Amend Transactions Referencing USD LIBOR

On March 6, 2020, the Alternative Rate Reference Committee (ARRC), the Federal Reserve's LIBOR-transition working group comprised of private-sector entities and industry regulators, released its New York State legislative proposal for amending financial contracts that lack adequate fallback language.¹ The proposed New York law would apply to certain LIBOR-based financial contracts executed prior to LIBOR's discontinuation and amend them, by operation of law, to include ARRC's recommended fallback rate plus a spread adjustment. ARRC drafted the law to provide legal certainty and to minimize the potentially adverse economic consequences associated with the industry's transition away from LIBOR.