§5804 Continuity of Contract and Safe Harbor

Summary

The Board can pick a replacement rate for LIBOR, and using that Board-picked rate and making the related contract changes counts as a valid substitute. Using the Board’s replacement is treated as a reasonable, comparable rate that works like LIBOR, is based on similar methods or information, counts as carrying out LIBOR-based duties, and, for Truth in Lending rules, has similar past ups and downs. Choosing or using the Board’s replacement, or making the required contract changes, cannot be used to reduce or change anyone’s right to get paid or the amount or timing of payments. It cannot be treated as a reason to stop or excuse performance, to let someone unilaterally end the deal, to call a breach, or to void the contract. No one can be held liable or sued for picking or using the Board’s replacement, for making the conforming changes, or, for non-consumer LIBOR contracts, for deciding what those changes should be. Those actions are not treated as amending the contract and do not hurt anyone’s rights or obligations. Except as limited elsewhere in the chapter, nothing here should be read to imply that a non-Board replacement or a non-conforming contract change is invalid or unenforceable.