Coalition Support Letter for "Adjustable Interest Rate (LIBOR) Act" (H.R. 4616)
December 6, 2021
An industry coalition that includes The Real Estate Roundtable sent a letter on Dec. 7, 2021 urging House policymakers to pass the Adjustable Interest Rate (LIBOR) Act (H.R. 4616). The bill, passed on Dec. 8, would protect trillions in “tough legacy” contracts that use the London Interbank Offered Rate (LIBOR) as a reference rate for financial transactions. The Roundtable s has long-supported this protective measure.
The letter states:
"H.R. 4616 provides a solution for these 'tough legacy' contracts that have insufficient fallback language and cannot otherwise be amended among the parties. The legislation is narrowly crafted to allow parties to contracts that already have effective fallback provisions to opt-out of the legislation and to only apply to tough legacy contracts so that new or future business will not be affected. In addition, the legislation offers uniform, equitable treatment for all U.S. contracts that fall under the federal legislation. It creates a safe harbor from litigation for parties that are covered by the legislation and prevents otherwise inevitable litigation costs and gridlock. The need for uniform federal legislation has been expressed by consumer groups, investors, financial regulators, and industry participants."
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