On October 28, New York State Senator Kevin Thomas (D-Nassau County) introduced legislation substantially similar to the proposed legislation from the Alternative Reference Rates Committee (“ARRC”) related to LIBOR’s transition. The bill (S.9070), available here, provides fallback benchmarks for US LIBOR legacy contracts governed by New York law that lack fallback provisions.
We previously published a Client Alert discussing draft legislation currently circulating in Congress that mirrors S.9070, which, as federal legislation, would provide for a legislative solution in all states, including New York.
Although introduced, S.9070 is not likely to be taken up until sometime in 2021 after the new legislative session begins in New York in January.
With the LIBOR cessation date looming as we head into 2021, market participants are closely monitoring Congress and the New York state legislature for any developments on the legislative solution front.
If you would like further information about this or any other matter, please feel free to contact any member of the Global Bank and Institutional Finance & Restructuring Group or the LIBOR Transition Task Force.