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Bill117th CongressFiled Jul 22, 2021Finance and Financial Sector
H.R. 4616

Adjustable Interest Rate (LIBOR) Act of 2021

Bill journey · stage 1 of 5

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What it doesSummary passed house (Dec 8, 2021)

Adjustable Interest Rate (LIBOR) Act of 2021

This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations.

In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition.

What just happenedMar 3, 2022

Committee on Banking, Housing, and Urban Affairs. Hearings held.

Who’s behind it

Rep. Sherman, Brad [D-CA-30](D-CA)Sponsor
Read on Congress.gov
4committees25actions2related bills12subjects
  1. Mar 3, 2022Committee

    Committee on Banking, Housing, and Urban Affairs. Hearings held.

    Banking, Housing, and Urban Affairs Committee
  2. Dec 9, 2021IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

    Banking, Housing, and Urban Affairs Committee
  3. Dec 8, 2021FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  4. Dec 8, 2021FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 415 - 9 (Roll no. 407). (text: CR H7479-7481)

  5. Dec 8, 2021Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 415 - 9 (Roll no. 407).(text: CR H7479-7481)

  6. Dec 8, 2021FloorH30000

    Considered as unfinished business. (consideration: CR H7529-7530)

  7. Dec 8, 2021FloorH37220

    At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.

  8. Dec 8, 2021FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 4616.

  9. Dec 8, 2021FloorH30000

    Considered under suspension of the rules. (consideration: CR H7479-7486)

  10. Dec 8, 2021FloorH30300

    Mr. Sherman moved to suspend the rules and pass the bill, as amended.

  11. Dec 7, 2021CalendarsH12410

    Placed on the Union Calendar, Calendar No. 147.

  12. Dec 7, 2021DischargeH12300

    Committee on Education and Labor discharged.

    Education and the Workforce Committee
  13. Dec 7, 2021Committee5500

    Committee on Education and Labor discharged.

    Education and the Workforce Committee
  14. Dec 7, 2021DischargeH12300

    Committee on Ways and Means discharged.

    Ways and Means Committee
  15. Dec 7, 2021Committee5500

    Committee on Ways and Means discharged.

    Ways and Means Committee
  16. Dec 7, 2021CommitteeH12200

    Reported (Amended) by the Committee on Financial Services. H. Rept. 117-206, Part I.

    Financial Services Committee
  17. Dec 7, 2021Committee5000

    Reported (Amended) by the Committee on Financial Services. H. Rept. 117-206, Part I.

    Financial Services Committee
  18. Jul 29, 2021Committee

    Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.

    Financial Services Committee
  19. Jul 29, 2021Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  20. Jul 28, 2021Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  21. Jul 22, 2021IntroReferralH11100

    Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

    Education and the Workforce Committee
  22. Jul 22, 2021IntroReferralH11100

    Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

    Ways and Means Committee
  23. Jul 22, 2021IntroReferralH11100

    Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

    Financial Services Committee
  24. Jul 22, 2021IntroReferralIntro-H

    Introduced in House

  25. Jul 22, 2021IntroReferral1000

    Introduced in House

Passed HouseDec 8, 202153

Adjustable Interest Rate (LIBOR) Act of 2021

This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations.

In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition.

Reported to HouseDec 7, 20217

Adjustable Interest Rate (LIBOR) Act of 2021

This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations.

In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition.

Introduced in HouseJul 22, 2021

Adjustable Interest Rate (LIBOR) Act of 2021

This bill provides for the transition of certain financial contracts away from the London Interbank Offered Rate (LIBOR), a reference interest rate based upon the lending terms certain banks offer to each other for various lengths of time. LIBOR is set to be retired in 2023. Various financial contracts reference LIBOR as a benchmark for prevailing interest rates and use LIBOR in calculating certain payments or obligations.

In the event a contract referencing LIBOR does not have a fallback or replacement rate provision in effect when LIBOR is retired, or a replacement rate is not selected by a determining person as defined by the bill, the bill provides for a transition to a replacement rate selected by the Board of Governors of the Federal Reserve System. The bill also provides for conforming changes to these contracts, the continuity and enforceability of these contracts, and protections against liability as a result of such a transition.

The bill also addresses the tax consequences of such a transition. Specifically, the selection or use of a replacement rate; the determination, implementation, or performance of related conforming changes to a contract; or other application of changes related to the transition shall not be treated as a sale, exchange, or other disposition of property for tax purposes.