To promote a safe and sound Libor transition, U.S. regulators on November 30, 2020 urged lenders to stop using the London interbank offered rate (Libor) on new loan transactions by December 31, 2021.
In addition for new loans entered before December 31, 2021, U.S. regulators urged lenders to either utilize a reference rate other than Libor or have robust fallback language that includes a clearly defined alternative reference rate after Libor’s discontinuation.
All borrowers should review their loan documents to determine if their loan is Libor based. For all Libor based loans which do not refer to a clearly defined alternative reference rate, borrowers should contact their lender to discuss amending the loan documents to incorporate a clearly defined alternative reference rate after Libor’s discontinuation.
Simantob Law Group has represented the business and real estate legal needs of individuals and companies from start-ups to regional and national U.S. corporations for over twenty years. Please contact business and real estate finance attorneys at 310.281.0041 or email us at firstname.lastname@example.org to discuss your Libor-based loan and how we can help.