{"id":343,"date":"2021-04-15T12:30:18","date_gmt":"2021-04-15T16:30:18","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/bankinglaw\/?p=343"},"modified":"2021-06-17T11:27:43","modified_gmt":"2021-06-17T15:27:43","slug":"new-york-governor-signs-the-first-libor-transition-legislation-into-law","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/bankinglaw\/2021\/04\/15\/new-york-governor-signs-the-first-libor-transition-legislation-into-law\/","title":{"rendered":"New York Governor Signs the First LIBOR Transition Legislation into Law"},"content":{"rendered":"<p>On March 24, 2021, the New York Legislature passed\u00a0<a title=\"New York Senate Bill S297\" href=\"https:\/\/www.nysenate.gov\/legislation\/bills\/2021\/s297\/amendment\/original\" target=\"_blank\" rel=\"noopener\">Senate Bill 297B\/Assembly Bill 164B<\/a>, intended to reduce risks associated with the transition away from U.S. dollar (USD) LIBOR. The text of the legislation was initially\u00a0<a title=\"ARRC Endorses Decision to Sign New York State LIBOR Legislation into Law\" href=\"https:\/\/www.newyorkfed.org\/arrc\/publications\/legislation\" target=\"_blank\" rel=\"noopener\">presented by the ARRC<\/a>\u00a0last year. On April 6, 2021, New York Governor Andrew Cuomo\u00a0<a title=\"N.Y. Governor Signs Libor Fix Into Law to Avert Transition Chaos\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-04-07\/n-y-governor-signs-libor-fix-into-law-to-avert-transition-chaos\" target=\"_blank\" rel=\"noopener\">signed<\/a>\u00a0the bill into law. The New York law has become the first legislative action relating to LIBOR transition and may serve as a model legislation for other states to follow.<\/p>\n<p>While the UK Financial Conduct Authority, LIBOR\u2019s regulator and administrator,\u00a0<a title=\"Announcements on the end of LIBOR\" href=\"https:\/\/www.fca.org.uk\/news\/press-releases\/announcements-end-libor\" target=\"_blank\" rel=\"noopener\">confirmed<\/a> that it would cease publication of representative USD LIBOR for the major USD LIBOR settings in mid-2023, which helps address a substantial portion of legacy contracts, there will be a significant number contracts that mature after mid-2023 and contracts that have no effective means to replace LIBOR upon its cessation. The New York legislation addresses those contracts without effective fallbacks that are governed by New York state law. It is expected to provide legal clarity for many New York financial products and agreements referencing USD LIBOR, reduce potential disputes surrounding the transition and lessen the burden on New York courts. Read on to see how our\u00a0<em><a href=\"https:\/\/www.duanemorris.com\/alerts\/new_york_governor_signs_first_libor_transition_legislation_law_0421.html\">Alert, published today<\/a>\u00a0<\/em>to learn more about the legislation!<\/p>\n<p>Duane Morris\u2019 LIBOR Transition Team:\u00a0\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/rogerschari.html\">Roger S. Chari<\/a>, Chair, \u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/joelnephross.html\">Joel N. Ephross<\/a>,\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/ameliaamyhhuskins.html\">Amelia (Amy) H. Huskins<\/a>,\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/michellengo.html\">Phuong (Michelle) Ngo<\/a>, and\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/hanwang.html\">Han Wang<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On March 24, 2021, the New York Legislature passed\u00a0Senate Bill 297B\/Assembly Bill 164B, intended to reduce risks associated with the transition away from U.S. dollar (USD) LIBOR. The text of the legislation was initially\u00a0presented by the ARRC\u00a0last year. On April 6, 2021, New York Governor Andrew Cuomo\u00a0signed\u00a0the bill into law. The New York law has &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/bankinglaw\/2021\/04\/15\/new-york-governor-signs-the-first-libor-transition-legislation-into-law\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;New York Governor Signs the First LIBOR Transition Legislation into Law&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"ppma_author":[333],"class_list":["post-343","post","type-post","status-publish","format-standard","hentry","category-general"],"authors":[{"term_id":333,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/843ff6e7a8fe5fc92109b47a45f34b6cf0ea499e6e788db23456c838b0ae6747?s=96&d=blank&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/comments?post=343"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/343\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/media?parent=343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/categories?post=343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/tags?post=343"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/ppma_author?post=343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}