Adjustable Interest Rate (LIBOR) Act of 2021
USA117th CongressHR-4616| House
| Updated: 3/3/2022
Brad Sherman
Democratic Representative
California
Ways and Means Committee, Financial Services Committee, Education and Workforce Committee, Banking, Housing, and Urban Affairs Committee
- Introduced
- In Committee
- On Floor
- Passed Chamber
- Enacted
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.
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Timeline
Introduced in House
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.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.
Committee Consideration and Mark-up Session Held.
Placed on the Union Calendar, Calendar No. 147.
Reported (Amended) by the Committee on Financial Services. H. Rept. 117-206, Part I.
Committee on Education and Labor discharged.
Committee on Ways and Means discharged.
Mr. Sherman moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H7479-7486)
DEBATE - The House proceeded with forty minutes of debate on H.R. 4616.
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.
Considered as unfinished business. (consideration: CR H7529-7530)
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)
View VoteMotion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs. Hearings held.
Finance and Financial Sector
Bank accounts, deposits, capitalBanking and financial institutions regulationCivil actions and liabilityConsumer creditContracts and agencyCredit and credit marketsDebt collectionGovernment lending and loan guaranteesHigher educationInterest, dividends, interest ratesStudent aid and college costsTax administration and collection, taxpayers
Adjustable Interest Rate (LIBOR) Act of 2021
USA117th CongressHR-4616| House
| Updated: 3/3/2022
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.
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Timeline
Introduced in House
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.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.
Committee Consideration and Mark-up Session Held.
Placed on the Union Calendar, Calendar No. 147.
Reported (Amended) by the Committee on Financial Services. H. Rept. 117-206, Part I.
Committee on Education and Labor discharged.
Committee on Ways and Means discharged.
Mr. Sherman moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H7479-7486)
DEBATE - The House proceeded with forty minutes of debate on H.R. 4616.
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.
Considered as unfinished business. (consideration: CR H7529-7530)
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)
View VoteMotion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs. Hearings held.
Brad Sherman
Democratic Representative
California
Ways and Means Committee, Financial Services Committee, Education and Workforce Committee, Banking, Housing, and Urban Affairs Committee
Finance and Financial Sector
Related Bills
- Introduced
- In Committee
- On Floor
- Passed Chamber
- Enacted
Bank accounts, deposits, capitalBanking and financial institutions regulationCivil actions and liabilityConsumer creditContracts and agencyCredit and credit marketsDebt collectionGovernment lending and loan guaranteesHigher educationInterest, dividends, interest ratesStudent aid and college costsTax administration and collection, taxpayers