United States Code

USC most recently checked for updates: Jul 18, 2024

§ 5802.
Definitions
In this chapter:
(1)
Benchmark

The term “benchmark” means an index of interest rates or dividend rates that is used, in whole or in part, as the basis of or as a reference for calculating or determining any valuation, payment, or other measurement.

(2)
Benchmark administrator

The term “benchmark administrator” means a person that publishes a benchmark for use by third parties.

(3)
Benchmark replacement

The term “benchmark replacement” means a benchmark, or an interest rate or dividend rate (which may or may not be based in whole or in part on a prior setting of LIBOR), to replace LIBOR or any interest rate or dividend rate based on LIBOR, whether on a temporary, permanent, or indefinite basis, under or with respect to a LIBOR contract.

(4)
Benchmark replacement conforming changes
The term “benchmark replacement conforming changes” means any technical, administrative, or operational changes, alterations, or modifications that—
(A)
the Board determines, in its discretion, would address 1 or more issues affecting the implementation, administration, and calculation of the Board-selected benchmark replacement in LIBOR contracts; or
(B)
solely with respect to a LIBOR contract that is not a consumer loan, in the reasonable judgment of a calculating person, are otherwise necessary or appropriate to permit the implementation, administration, and calculation of the Board-selected benchmark replacement under or with respect to a LIBOR contract after giving due consideration to any benchmark replacement conforming changes under subparagraph (A).
(5)
Board

The term “Board” means the Board of Governors of the Federal Reserve System.

(6)
Board-selected benchmark replacement

The term “Board-selected benchmark replacement” means a benchmark replacement identified by the Board that is based on SOFR, including any tenor spread adjustment pursuant to section 5803(e) of this title.

(7)
Calculating person

The term “calculating person” means, with respect to any LIBOR contract, any person, including the determining person, responsible for calculating or determining any valuation, payment, or other measurement based on a benchmark.

(8)
Consumer; credit

The terms “consumer” and “credit” have the meanings given the terms in section 1602 of title 15.

(9)
Consumer loan

The term “consumer loan” means a consumer credit transaction.

(10)
Determining person

The term “determining person” means, with respect to any LIBOR contract, any person with the authority, right, or obligation, including on a temporary basis (as identified by the LIBOR contract or by the governing law of the LIBOR contract, as appropriate) to determine a benchmark replacement.

(11)
Fallback provisions

The term “fallback provisions” means terms in a LIBOR contract for determining a benchmark replacement, including any terms relating to the date on which the benchmark replacement becomes effective.

(12)
IBOR

The term “IBOR” means LIBOR, any tenor of non-U.S. dollar currency rates formerly known as the London interbank offered rate as administered by ICE Benchmark Administration Limited (or any predecessor or successor administrator thereof), and any other interbank offered rates that are expected to cease.

(13)
IBOR benchmark replacement

The term “IBOR benchmark replacement” means a benchmark, or an interest rate or dividend rate (which may or may not be based in whole or in part on a prior setting of an IBOR), to replace an IBOR or any interest rate or dividend rate based on an IBOR, whether on a temporary, permanent, or indefinite basis, under or with respect to an IBOR contract.

(14)
IBOR contract

The term “IBOR contract” means any contract, agreement, indenture, organizational document, guarantee, mortgage, deed of trust, lease, security (whether representing debt or equity, including any interest in a corporation, a partnership, or a limited liability company), instrument, or other obligation or asset that, by its terms, continues in any way to use an IBOR as a benchmark.

(15)
LIBOR
The term “LIBOR”—
(A)
means the overnight and 1-, 3-, 6-, and 12-month tenors of U.S. dollar LIBOR (formerly known as the London interbank offered rate) as administered by ICE Benchmark Administration Limited (or any predecessor or successor administrator thereof); and
(B)
does not include the 1-week or 2-month tenors of U.S. dollar LIBOR.
(16)
LIBOR contract

The term “LIBOR contract” means any contract, agreement, indenture, organizational document, guarantee, mortgage, deed of trust, lease, security (whether representing debt or equity, including any interest in a corporation, a partnership, or a limited liability company), instrument, or other obligation or asset that, by its terms, uses LIBOR as a benchmark.

(17)
LIBOR replacement date

The term “LIBOR replacement date” means the first London banking day after June 30, 2023, unless the Board determines that any LIBOR tenor will cease to be published or cease to be representative on a different date.

(18)
Security

The term “security” has the meaning given the term in section 77b(a) of title 15.

(19)
SOFR

The term “SOFR” means the Secured Overnight Financing Rate published by the Federal Reserve Bank of New York (or a successor administrator).

(20)
Tenor spread adjustment
The term “tenor spread adjustment” means—
(A)
0.00644 percent for overnight LIBOR;
(B)
0.11448 percent for 1-month LIBOR;
(C)
0.26161 percent for 3-month LIBOR;
(D)
0.42826 percent for 6-month LIBOR; and
(E)
0.71513 percent for 12-month LIBOR.
(Pub. L. 117–103, div. U, § 103, Mar. 15, 2022, 136 Stat. 826.)
cite as: 12 USC 5802