Title 12 — Banks and BankingRelease 119-73

§5806 Preemption

Title 12 › Chapter CHAPTER 55— - ADJUSTABLE INTEREST RATE (LIBOR) › § 5806

Last updated Apr 6, 2026|Official source

Summary

Federal rules override state or local laws about choosing or using a replacement benchmark, and override any limits on how interest is calculated, including compounding, for Board-picked replacements.

Full Legal Text

Title 12, §5806

Banks and Banking — Source: USLM XML via OLRC

This chapter, and regulations promulgated under this chapter, shall supersede any provision of any State or local law, statute, rule, regulation, or standard—

(1)relating to the selection or use of a benchmark replacement or related conforming changes; or

(2)expressly limiting the manner of calculating interest, including the compounding of interest, as that provision applies to the selection or use of a Board-selected benchmark replacement or benchmark replacement conforming changes.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this division”, meaning div. U of Pub. L. 117–103, Mar. 15, 2022, 136 Stat. 825, known as the Adjustable Interest Rate (LIBOR) Act, which is classified principally to this chapter. For complete classification of div. U to the Code, see

Short Title

note set out under section 5801 of this title and Tables.

Reference

Citations & Metadata

Citation

12 U.S.C. § 5806

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73