Governor Cuomo Introduces Proposed New York Legislation on LIBOR
Replacement
On Tuesday January 19, 2021, New York Governor Andrew Cuomo
proposed New York-specific legislation aimed at minimizing the
legal uncertainty and potential adverse economic impact associated
with the transition away from LIBOR due to its expected
cessation.1 Governor Cuomo's proposal is
part of a broader bill addressing the transportation, economic
development and environmental conservation budget for New York
State for the 2021-2022 fiscal year.2 The proposed LIBOR
legislation largely mirrors the legislative bill proposed by the
Alternative Reference Rate Committee ("ARRC").3
If enacted, the proposed legislation would provide for a
statutory replacement benchmark rate for contracts that use LIBOR
as a benchmark and either (i) contain no fallback provisions, or
(ii) contain fallback provisions that result in a benchmark
replacement that is based in any way on LIBOR.4 As such, the
proposal
