§5804 Continuity of Contract and Safe Harbor

Summary

Treat a benchmark that the Board picks, and any contract changes made to use it, as a proper and reasonable substitute for LIBOR. The Board-picked rate counts as a fair, comparable rate that works like LIBOR, uses similar ways to get its numbers, shows similar past ups and downs for Truth in Lending rules, and means people have substantially performed rights or duties tied to LIBOR. Picking or using the Board-picked rate, or making the matching contract changes, cannot be used to reduce or delay someone’s payments, let someone stop or avoid performing a contract, or be treated as a breach or as voiding the contract. People cannot be sued or held liable for choosing or using the Board-picked rate or for putting the matching changes into effect, and for deciding those changes when the contract is not a consumer loan. Parties still must follow any contract terms that this law does not touch and must fix clerical or servicing errors. Unless section 5803 says otherwise, nothing here should be used to argue that other benchmark choices or other non-matching contract changes are invalid.