,,ii #aag? ,,congress #b;d ,session ,s4 #cggi ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,m>* #h 7legislative day1 ,m>* #g71 #bjbb,mr4 ,te/] 7= himself1 ,mr4 ,tillis1 ,mr4 ,br[n1 ,mr4 ,toomey1 ,mr4 ,r\nds1 ,mr4 ,re$1 ,mr4 ,hag]ty1 & ,mr4 ,w>n]7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to e/abli% a cle> & uni=m process1 on a nationwide basis1 = replac+ ! ,london int]bank (f]$ rate 9 exi/+ contracts1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,adju/able ,int]e/ ,rate 7,,libor7 ,act4 #b4 ,f9d+s & purpose 7a7 ,f9d+s ,congress f9ds t-- 7#a7 ,,libor is us$ z a b5*m>k rate 9 m ?an #bjj1jjj1jjj1jjj1jjj wor? ( contracts worldwide2 7#b7 a significant numb] ( exi/+ contracts t ref]5ce ,,libor d n provide = ! use ( a cle>ly def9$ or practicable replacem5t b5*m>k rate :5 ,,libor is discont9u$2 & 7#c7 ! cessation or nonrepres5tativ5ess ( ,,libor c\ld result 9 disruptive litigation relat$ to exi/+ contracts t d n provide = ! use ( a cle>ly def9$ or practicable replacem5t b5*m>k rate4 7b7 ,purpose ,x is ! purpose ( ?is ,act-- 7#a7 to e/abli% a cle> & uni=m process1 on a nationwide basis1 = replac+ ,,libor 9 exi/+ contracts ! t]ms ( :i* d n provide = ! use ( a cle>ly def9$ or practicable replacem5t b5*m>k rate1 )\t affect+ ! ability ( p>ties to use any appropriate b5*m>k rate 9 new contracts2 7#b7 to preclude litigation relat$ to exi/+ contracts ! t]ms ( :i* d n provide = ! use ( a cle>ly def9$ or practicable replacem5t b5*m>k rate2 7#c7 to all[ exi/+ contracts t ref]5ce ,,libor b provide = ! use ( a cle>ly def9$ & practicable replacem5t rate1 to op]ate accord+ to _! t]ms2 & 7#d7 to address ,,libor ref]5ces 9 ,f$]al law4 #c4 ,def9itions ,9 ?is ,act3 7#a7 ,b5*m>k ,! t]m b5*m>k means an index ( int]e/ rates or divid5d rates t is us$1 9 :ole or 9 "p1 z ! basis ( or z a ref]5ce = calculat+ or det]m9+ any valuation1 paym5t1 or o!r measurem5t4 7#b7 ,b5*m>k adm9i/rator ,! t]m b5*m>k adm9i/rator means a p]son t publi%es a b5*m>k = use by ?ird p>ties4 7#c7 ,b5*m>k replacem5t ,! t]m b5*m>k replacem5t means a b5*m>k1 or an int]e/ rate or divid5d rate 7:i* may or may n be bas$ 9 :ole or 9 "p on a prior sett+ ( ,,libor71 to replace ,,libor or any int]e/ rate or divid5d rate bas$ on ,,libor1 :e!r on a tempor>y1 p]man5t1 or indef9ite basis1 "u or ) respect to a ,,libor contract4 7#d7 ,b5*m>k replacem5t con=m+ *anges ,! t]m b5*m>k replacem5t con=m+ *anges means any te*nical1 adm9i/rative1 or op]ational *anges1 alt]ations1 or modifications t-- 7,a7 ! ,bo>d det]m9es1 9 its discretion1 w\ld address #a or m issues affect+ ! implem5tation1 adm9i/ration1 & calculation ( ! ,bo>d-select$ b5*m>k replacem5t 9 ,,libor contracts2 or 7,b7 solely ) respect to a ,,libor contract t is n a consum] loan1 9 ! reasonable judgm5t ( a calculat+ p]son1 are o!rwise necess>y or appropriate to p]mit ! implem5tation1 adm9i/ration1 & calculation ( ! ,bo>d-select$ b5*m>k replacem5t "u or ) respect to a ,,libor contract aft] giv+ due consid]ation to any b5*m>k replacem5t con=m+ *anges "u subp>agraph 7,a74 7#e7 ,bo>d ,! t]m ,bo>d means ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em4 7#f7 ,bo>d-select$ b5*m>k replacem5t ,! t]m ,bo>d-select$ b5*m>k replacem5t means a b5*m>k replacem5t id5tifi$ by ! ,bo>d t is bas$ on ,,s(r1 includ+ any t5or spread adju/m5t pursuant to section #d7;e74 7#g7 ,calculat+ p]son ,! t]m calculat+ p]son means1 ) respect to any ,,libor contract1 any p]son1 includ+ ! det]m9+ p]son1 responsible = calculat+ or det]m9+ any valuation1 paym5t1 or o!r measurem5t bas$ on a b5*m>k4 7#h7 ,consum]2 cr$it ,! t]ms consum] & cr$it h ! mean+s giv5 ! t]ms 9 section #ajc ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afjb74 7#i7 ,consum] loan ,! t]m consum] loan means a consum] cr$it transaction4 7#aj7 ,det]m9+ p]son ,! t]m det]m9+ p]son means1 ) respect to any ,,libor contract1 any p]son ) ! au?ority1 "r1 or obligation1 includ+ on a tempor>y basis 7z id5tifi$ by ! ,,libor contract or by ! gov]n+ law ( ! ,,libor contract1 z appropriate7 to det]m9e a b5*m>k replacem5t4 7#aa7 ,fallback provisions ,! t]m fallback provisions means t]ms 9 a ,,libor contract = det]m9+ a b5*m>k replacem5t1 includ+ any t]ms relat+ to ! date on :i* ! b5*m>k replacem5t becomes effective4 7#ab7 ,,ibor ,! t]m ,,ibor means ,,libor1 any t5or ( non-,u4,s4 doll> curr5cy rates =m]ly kn[n z ! ,london int]bank (f]$ rate z adm9i/]$ by ,,ice ,b5*m>k ,adm9i/ration ,limit$ 7or any pr$ecessor or successor adm9i/rator !re(71 & any o!r int]bank (f]$ rates t are expect$ to cease4 7#ac7 ,,ibor b5*m>k replacem5t ,! t]m ,,ibor b5*m>k replacem5t means a b5*m>k1 or an int]e/ rate or divid5d rate 7:i* may or may n be bas$ 9 :ole or 9 "p on a prior sett+ ( an ,,ibor71 to replace an ,,ibor or any int]e/ rate or divid5d rate bas$ on an ,,ibor1 :e!r on a tempor>y1 p]man5t1 or indef9ite basis1 "u or ) respect to an ,,ibor contract4 7#ad7 ,,ibor contract ,! t]m ,,ibor contract means any contract1 agreem5t1 ind5ture1 organizational docum5t1 gu>antee1 mortgage1 de$ ( tru/1 lease1 security 7:e!r repres5t+ debt or equity1 includ+ any int]e/ 9 a corporation1 a p>tn]%ip1 or a limit$ liability company71 in/rum5t1 or o!r obligation or asset t1 by its t]ms1 cont9ues 9 any way to use an ,,ibor z a b5*m>k4 7#ae7 ,,libor ,! t]m ,,libor-- 7,a7 means ! ov]night & #a-1 #c-1 #f-1 & #ab-mon? t5ors ( ,u4,s4 doll> ,,libor 7=m]ly kn[n z ! ,london int]bank (f]$ rate7 z adm9i/]$ by ,,ice ,b5*m>k ,adm9i/ration ,limit$ 7or any pr$ecessor or successor adm9i/rator !re(72 & 7,b7 does n include ! #a-week or #b-mon? t5ors ( ,u4,s4 doll> ,,libor4 7#af7 ,,libor contract ,! t]m ,,libor contract means any contract1 agreem5t1 ind5ture1 organizational docum5t1 gu>antee1 mortgage1 de$ ( tru/1 lease1 security 7:e!r repres5t+ debt or equity1 includ+ any int]e/ 9 a corporation1 a p>tn]%ip1 or a limit$ liability company71 in/rum5t1 or o!r obligation or asset t1 by its t]ms1 uses ,,libor z a b5*m>k4 7#ag7 ,,libor ,replacem5t ,date ,! t]m ,,libor replacem5t date means ! fir/ ,london bank+ day aft] ,june #cj1 #bjbc1 unless ! ,bo>d det]m9es t any ,,libor t5or w cease to be publi%$ or cease to be repres5tative on a diff]5t date4 7#ah7 ,security ,! t]m security has ! mean+ giv5 ! t]m 9 section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7#ai7 ,,s(r ,! t]m ,,s(r means ! ,secur$ ,ov]night ,f9anc+ ,rate publi%$ by ! ,f$]al ,res]ve ,bank ( ,new ,york 7or a successor adm9i/rator74 7#bj7 ,t5or spread adju/m5t ,! t]m t5or spread adju/m5t means-- 7,a7 #j4jjfdd p]c5t = ov]night ,,libor2 7,b7 #j4aaddh p]c5t = #a-mon? ,,libor2 7,c7 #j4bfafa p]c5t = #c-mon? ,,libor2 7,d7 #j4dbhbf p]c5t = #f-mon? ,,libor2 & 7,e7 #j4gaeac p]c5t = #ab-mon? ,,libor4 #d4 ,libor contracts 7a7 ,9 g5]al ,on ! ,,libor replacem5t date1 ! ,bo>d-select$ b5*m>k replacem5t %all be ! b5*m>k replacem5t = any ,,libor contract t1 aft] giv+ any effect to subsection 7b7-- 7#a7 conta9s no fallback provisions2 or 7#b7 conta9s fallback provisions t id5tify nei!r-- 7,a7 a specific b5*m>k replacem5t2 nor 7,b7 a det]m9+ p]son4 7b7 ,fallback provisions ,on ! ,,libor replacem5t date1 any ref]5ce 9 ! fallback provisions ( a ,,libor contract to-- 7#a7 a b5*m>k replacem5t t is bas$ 9 any way on any ,,libor value1 except to acc\nt = ! diff]5ce betwe5 ,,libor & ! b5*m>k replacem5t2 or 7#b7 a requirem5t t a p]son 7o!r ?an a b5*m>k adm9i/rator7 conduct a poll1 survey1 or inquiries = quotes or in=mation conc]n+ int]bank l5d+ or deposit rates2 %all be disreg>d$ z if n includ$ 9 ! fallback provisions ( su* ,,libor contract & %all be deem$ null & void & )\t any =ce or effect4 7c7 ,au?ority ( det]m9+ p]son 7#a7 ,9 g5]al ,subject to subsection 7f77#b71 a det]m9+ p]son may select ! ,bo>d-select$ b5*m>k replacem5t z ! b5*m>k replacem5t4 7#b7 ,selection ,any selection by a det]m9+ p]son ( ! ,bo>d-select$ b5*m>k replacem5t pursuant to p>agraph 7#a7 %all be-- 7,a7 irrevocable2 7,b7 made by ! e>li] ( ! ,,libor replacem5t date & ! late/ date = select+ a b5*m>k replacem5t accord+ to ! t]ms ( ! ,,libor contract2 & 7,c7 us$ 9 any det]m9ations ( ! b5*m>k "u or ) respect to ! ,,libor contract occurr+ on & aft] ! ,,libor replacem5t date4 7#c7 ,no selection ,if a det]m9+ p]son does n select a b5*m>k replacem5t by ! date specifi$ 9 p>agraph 7#b77;,b71 ! ,bo>d-select$ b5*m>k replacem5t1 on & aft] ! ,,libor replacem5t date1 %all be ! b5*m>k replacem5t = ! ,,libor contract4 7d7 ,con=m+ *anges 7#a7 ,9 g5]al ,if ! ,bo>d-select$ b5*m>k replacem5t becomes ! b5*m>k replacem5t = a ,,libor contract pursuant to subsection 7a7 or 7c71 all b5*m>k replacem5t con=m+ *anges %all become an integral "p ( ! ,,libor contract4 7#b7 ,no cons5t requir$ ,a calculat+ p]son %all n be requir$ to obta9 cons5t f any o!r p]son prior to ! adoption ( b5*m>k replacem5t con=m+ *anges4 7e7 ,adju/m5t by ,bo>d 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 on ! ,,libor replacem5t date1 ! ,bo>d %all adju/ ! ,bo>d-select$ b5*m>k replacem5t = ea* category ( ,,libor contract t ! ,bo>d may id5tify to include ! relevant t5or spread adju/m5t4 7#b7 ,consum] loans ,= ,,libor contracts t are consum] loans1 ! ,bo>d %all adju/ ! ,bo>d-select$ b5*m>k replacem5t z foll[s3 7,a7 ,dur+ ! #a-ye> p]iod beg9n+ on ! ,,libor replacem5t date1 incorporate an am\nt1 to be det]m9$ = any bus9ess day dur+ t p]iod1 t transitions l9e>ly f ! diff]5ce betwe5 ! ,bo>d-select$ b5*m>k replacem5t & ! correspond+ ,,libor t5or det]m9$ z ( ! day imm$iately be=e ! ,,libor replacem5t date to ! relevant t5or spread adju/m5t4 7,b7 ,on & aft] ! date t is #a ye> aft] ! ,,libor replacem5t date1 incorporate ! relevant t5or spread adju/m5t4 7f7 ,rule ( con/ruction ,no?+ 9 ?is ,act may be con/ru$ to alt] or impair-- 7#a7 any writt5 agreem5t specify+ t a ,,libor contract %all n be subject to ?is ,act2 7#b7 except z provid$ 9 subsection 7b71 any ,,libor contract t conta9s fallback provisions t id5tify a b5*m>k replacem5t t is n bas$ 9 any way on any ,,libor value 7includ+ ! prime rate or ! effective ,f$]al funds rate72 7#c7 except z provid$ 9 subsection 7b7 or 7c77#c71 any ,,libor contract subject to subsection 7c77#a7 z to :i* a det]m9+ p]son does n elect to use a ,bo>d-select$ b5*m>k replacem5t pursuant to t subsection2 7#d7 ! application to a ,bo>d-select$ b5*m>k replacem5t ( any cap1 floor1 modifi]1 or spread adju/m5t to :i* ,,libor _h be5 subject pursuant to ! t]ms ( a ,,libor contract2 7#e7 any provision ( ,f$]al consum] f9ancial law t-- 7,a7 requires cr$itors to notify borr[]s reg>d+ a *ange-9-t]ms2 or 7,b7 gov]ns ! reevaluation ( rate increases on cr$it c>d acc\nts "u op5-end$ 7n home-secur$7 consum] cr$it plans2 or 7#f7 except z provid$ 9 section #e7;c71 ! rights or obligations ( any p]son1 or ! au?orities ( any ag5cy1 "u ,f$]al consum] f9ancial law1 z def9$ 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha74 #e4 ,cont9uity ( contract & safe h>bor 7a7 ,9 g5]al ,a ,bo>d-select$ b5*m>k replacem5t & ! selection or use ( a ,bo>d-select$ b5*m>k replacem5t z a b5*m>k replacem5t "u or ) respect to a ,,libor contract1 & any b5*m>k replacem5t con=m+ *anges1 %all con/itute-- 7#a7 a comm]cially reasonable replacem5t = & a comm]cially sub/antial equival5t to ,,libor2 7#b7 a reasonable1 comp>able1 or analog\s rate1 index1 or t]m = ,,libor2 7#c7 a replacem5t t is bas$ on a me?odology or in=mation t is simil> or comp>able to ,,libor2 7#d7 sub/antial p]=mance by any p]son ( any "r or obligation relat+ to or bas$ on ,,libor2 & 7#e7 a replacem5t t has hi/orical fluctuations t are sub/antially simil> to ^? ( ,,libor = purposes ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afja note7 & regulations promulgat$ "u t ,act4 7b7 ,no impairm5t ,nei!r ! selection or use ( a ,bo>d-select$ b5*m>k replacem5t z a b5*m>k replacem5t nor ! det]m9ation1 implem5tation1 or p]=mance ( b5*m>k replacem5t con=m+ *anges "u section #d may-- 7#a7 be deem$ to impair or affect ! "r ( any p]son to receive a paym5t1 or to affect ! am\nt or tim+ ( su* paym5t1 "u any ,,libor contract2 or 7#b7 h ! effect (-- 7,a7 dis*>g+ or excus+ p]=mance "u any ,,libor contract = any reason1 claim1 or def5se 7includ+ any =ce majeure or o!r provision 9 any ,,libor contract72 7,b7 giv+ any p]son ! "r to unilat]ally t]m9ate or susp5d p]=mance "u any ,,libor contract2 7,c7 con/itut+ a brea* ( any ,,libor contract2 or 7,d7 void+ or nullify+ any ,,libor contract4 7c7 ,safe h>bor ,no p]son %all be subject to any claim or cause ( action 9 law or equity or reque/ = equitable relief1 or h liability = damages1 aris+ out (-- 7#a7 ! selection or use ( a ,bo>d-select$ b5*m>k replacem5t1 7#b7 ! implem5tation ( b5*m>k replacem5t con=m+ *anges1 or 7#c7 ) respect to a ,,libor contract t is n a consum] loan1 ! det]m9ation ( b5*m>k replacem5t con=m+ *anges1 9 ea* case aft] giv+ effect to ! provisions ( section #d2 provid$1 h[ev]1 t 9 ea* case any p]son 7includ+ a calculat+ p]son7 %all rema9 subject to ! t]ms ( a ,,libor contract t are n affect$ by ?is ,act & any exi/+ legal1 regulatory1 or contractual obligations to correct s]vic+ or o!r m9i/]ial errors "u or ) respect to a ,,libor contract4 7d7 ,selection ,! selection or use ( a ,bo>d-select$ b5*m>k replacem5t or ! det]m9ation1 implem5tation1 or p]=mance ( b5*m>k replacem5t con=m+ *anges "u section #d %all n be deem$ to-- 7#a7 be an am5dm5t or modification ( any ,,libor contract2 or 7#b7 prejudice1 impair1 or affect ! rights1 int]e/s1 or obligations ( any p]son "u or ) respect to any ,,libor contract4 7e7 ,no negative inf]5ce ,except z provid$ 9 subsection 7a71 7b71 or 7c77#a7 ( section #d1 no?+ 9 ?is ,act may be con/ru$ to create any negative inf]5ce or negative presumption reg>d+ ! validity or en=ceability (-- 7#a7 any b5*m>k replacem5t 7includ+ any me?od = calculat+1 det]m9+1 or implem5t+ an adju/m5t to ! b5*m>k replacem5t to acc\nt = any hi/orical diff]5ces betwe5 ,,libor & ! b5*m>k replacem5t7 t is n a ,bo>d-select$ b5*m>k replacem5t2 or 7#b7 any *anges1 alt]ations1 or modifications to or ) respect to a ,,libor contract t are n b5*m>k replacem5t con=m+ *anges4 #f4 ,b5*m>k = loans 7a7 ,def9itions ,9 ?is section3 7#a7 ,bank ,! t]m bank means an in/itution subject to exam9ation by a ,f$]al f9ancial in/itutions regulatory ag5cy4 7#b7 ,cov]$ action ,! t]m cov]$ action means-- 7,a7 ! initiation by a ,f$]al sup]visory ag5cy ( an en=cem5t action1 includ+ ! issuance ( a cease-&-desi/ ord]2 or 7,b7 ! issuance by a ,f$]al sup]visory ag5cy ( a matt] requir+ att5tion1 a matt] requir+ imm$iate att5tion2 or a matt] requir+ bo>d att5tion result+ f a sup]visory activity conduct$ by ! ,f$]al sup]visory ag5cy4 7#c7 ,f$]al f9ancial in/itutions regulatory ag5cy ,! t]m ,f$]al f9ancial in/itutions regulatory ag5cies has ! mean+ giv5 ! t]m 9 section #ajjc ( ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh 7#ab ,u4,s4,c4 #ccjb74 7#d7 ,f$]al sup]visory ag5cy ,! t]m ,f$]al sup]visory ag5cy means an ag5cy li/$ 9 subp>agraphs 7,a7 ?r\gh 7,h7 ( section #aaja7g7 ( ! ,"r to ,f9ancial ,privacy ,act ( #aigh 7#ab ,u4,s4,c4 #cdja7g774 7#e7 ,non-,,ibor loan ,! t]m non-,,ibor loan means any loan t1 by its t]ms1 does n use 9 any way ,,libor1 any t5or ( non-,u4,s4 doll> curr5cy rates =m]ly kn[n z ! ,london int]bank (f]$ rate z adm9i/]$ by ,,ice ,b5*m>k ,adm9i/ration ,limit$ 7or any pr$ecessor or successor adm9i/rator !re(71 & any o!r int]bank (f]$ rates t are expect$ to cease1 z a b5*m>k4 7b7 ,b5*m>ks us$ by banks ,) respect to a b5*m>k us$ by a bank-- 7#a7 ! bank1 9 any non-,,ibor loan made be=e1 on1 or aft] ! date ( enactm5t ( ?is ,act1 may use any b5*m>k1 includ+ a b5*m>k t is n ,,s(r1 t ! bank det]m9es to be appropriate = ! fund+ model ( ! bank2 ! ne$s ( ! cu/om]s ( ! bank2 & ! products1 risk pr(ile1 risk managem5t capabilities1 & op]ational capabilities ( ! bank2 provid$1 h[ev]1 t ! use ( any b5*m>k %all rema9 subject to ! t]ms ( ! non-,,ibor loan1 & applicable law2 & 7#b7 no ,f$]al sup]visory ag5cy may take any cov]$ action aga9/ ! bank solely because t b5*m>k is n ,,s(r4 #g4 ,preemption ,?is ,act1 & regulations promulgat$ "u ?is ,act1 %all sup]s$e any provision ( any ,/ate or local law1 /atute1 rule1 regulation1 or /&>d-- 7#a7 relat+ to ! selection or use ( a b5*m>k replacem5t or relat$ con=m+ *anges2 or 7#b7 expressly limit+ ! mann] ( calculat+ int]e/1 includ+ ! comp\nd+ ( int]e/1 z t provision applies to ! selection or use ( a ,bo>d-select$ b5*m>k replacem5t or b5*m>k replacem5t con=m+ *anges4 #h4 ,tru/ ,ind5ture ,act ( #aici ,section #caf7;b7 ( ! ,tru/ ,ind5ture ,act ( #aici 7#ae ,u4,s4,c4 #ggppp7b77 is am5d$-- 7#a7 by /rik+ 1 except z & ins]t+ 81 except-- 7#a7 z 2 7#b7 9 p>agraph 7#a71 z s designat$1 by /rik+ 7a71 & except t & ins]t+ 87a72 7#b7 t 2 7#c7 9 p>agraph 7#b71 z s designat$1 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7#d7 by add+ at ! end ! foll[+3 7#c7 t ! "r ( any hold] ( any ind5ture security to receive paym5t ( ! pr9cipal ( & int]e/ on su* ind5ture security %all n be deem$ to be impair$ or affect$ by any *ange occurr+ by ! application ( section #d ( ! ,adju/able ,int]e/ ,rate 7,,libor7 ,act to any ind5ture security4 4 #i4 ,am5dm5t to ! ,high] ,education ,act ( #aife ,section #dch7;b77#b77;,i7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg-a7;b77#b77;,i77 is am5d$ by add+ at ! end ! foll[+3 7viii7 ,revis$ calculation rule to address in/ances :]e #a-mon? ,,usd ,,libor ceases or is non-repres5tative 7,i7 ,sub/itute ref]5ce index ,! provisions ( ?is clause apply to loans = :i* ! special all[ance paym5t w\ld o!rwise be calculat$ pursuant to clause 7vii74 7,,ii7 ,calculation bas$ on ,,s(r ,= loans describ$ 9 subclause 7,,iii7 or 7,,iv71 ! special all[ance paym5t describ$ 9 ?is subclause %all be sub/itut$ = ! paym5t provid$ "u clause 7vii74 ,= ea* cal5d> qu>t]1 ! =mula = comput+ ! special all[ance t w\ld o!rwise apply "u clause 7vii7 %all be revis$ by sub/itut+ ( ! quotes ( ! #cj-;day ,av]age ,secur$ ,ov]night ,f9anc+ ,rate 7,,s(r7 9 effect = ea* ( ! days 9 su* qu>t] z publi%$ by ! ,f$]al ,res]ve ,bank ( ,new ,york 7or a successor adm9i/rator71 adju/$ daily by add+ ! t5or spread adju/m5t1 z t t]m is def9$ 9 ! ,adju/able ,int]e/ ,rate 7,,libor7 ,act1 = #a-mon? ,,libor contracts ( #j4aaddh p]c5t = ( ! #a-mon? ,london ,int] ,bank ,(f]$ ,rate 7,,libor7 = ,unit$ ,/ates doll>s 9 effect = ea* ( ! days 9 su* qu>t] z compil$ & releas$ by ! ,briti% ,bank]s ,association4 ,! special all[ance calculation = loans subject to clause 7vii7 %all o!rwise rema9 9 effect4 7,,iii7 ,loans eligible = ,,s(r-bas$ calculation ,except z provid$ 9 subclause 7,,iv71 ! special all[ance paym5t calculat$ "u subclause 7,,ii7 %all apply to all loans = :i* ! hold] 7or1 if ! hold] acts z an eligible l5d] tru/ee = ! b5eficial own] ( ! loan1 ! b5eficial own] ( ! loan7 at any "t aft] ! effective date ( ?is clause notifies ! ,secret>y t ! hold] or b5eficial own] affirmatively & p]man5tly elects to waive all contractual1 /atutory1 or o!r legal rights to a special all[ance paid "u clause 7vii7 or to ! special all[ance paid pursuant to any o!r =mula t 0 previ\sly 9 effect ) respect to su* loan1 & accepts ! rate describ$ 9 subclause 7,,ii74 ,any su* waiv] %all apply to all loans !n held1 or to be held f "t to "t1 by su* hold] or b5eficial own]2 provid$ t1 due to ! ne$ to obta9 ! approval (1 demon/rat$ to ! satisfaction ( ! ,secret>y-- 7aa7 "o or m ?ird p>ties ) a legal or b5eficial int]e/ 9 loans eligible = ! ,,s(r-bas$ calculation2 or 7bb7 a nationally recogniz$ rat+ organization assign+ a rat+ to a f9anc+ secur$ by loans o!rwise eligible = ! ,,s(r-bas$ calculation1 ! hold] ( ! loan 7or1 if ! hold] acts z an eligible l5d] tru/ee = ! b5eficial own] ( ! loan1 ! b5eficial own] ( ! loan7 may elect to apply ! rate describ$ 9 subclause 7,,ii7 to specifi$ loan portfolios e/abli%$ = f9anc+ purposes by sep>ate notices ) diff]5t effective dates4 ,! special all[ance rate bas$ on ,,s(r %all be effective ) respect to a portfolio z ( ! fir/ day ( ! cal5d> qu>t] foll[+ ! applicable effective date ( ! waiv] receiv$ by ! ,secret>y f ! hold] or b5eficial own] & %all p]man5tly & irrevocably cont9ue = all subsequ5t qu>t]s4 7,,iv7 ,fallback provisions 7aa7 ,9 ! ev5t t a hold] or b5eficial own] has n elect$ to waive its rights to a special all[ance paym5t "u clause 7vii7 ) respect to a portfolio ) an effective date ( ! waiv] prior to ! fir/ (-- 7,,aa7 ! date on :i* ! ,,ice ,b5*m>k ,adm9i/ration 7,,iba7 has p]man5tly or indef9itely /opp$ provid+ ! #a-mon? ,unit$ ,/ates ,doll> ,,libor 7#a-mon? ,,usd ,,libor7 to ! g5]al public2 7,,bb7 ! effective date ( an (ficial public /atem5t by ! ,,iba or its regulator t ! #a-mon? ,,usd ,,libor is no long] reliable or no long] repres5tative2 or 7,,cc7 ! ,,libor replacem5t date1 z def9$ 9 section #c ( ! ,adju/able ,int]e/ ,rate 7,,libor7 ,act1 ! special all[ance rate calculation z describ$ 9 subclause 7,,ii7 %all1 by op]ation ( law1 apply to all loans 9 su* portfolio4 7bb7 ,9 su* ev5t-- 7,,aa7 ! la/ det]m9$ rate ( special all[ance bas$ on #a-mon? ,,usd ,,libor w cont9ue to apply until ! end ( ! !n curr5t cal5d> qu>t]2 & 7,,bb7 ! special all[ance rate calculation z describ$ 9 subclause 7,,ii7 %all become effective z ( ! fir/ day ( ! foll[+ cal5d> qu>t] & rema9 9 effect = all subsequ5t cal5d> qu>t]s4 4 #aj4 ,rulemak+ ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d %all promulgate regulations to c>ry out ?is ,act4