(a) In general
On the LIBOR replacement date, the Board-selected benchmark replacement shall be the benchmark replacement for any LIBOR contract that, after giving any effect to subsection (b)—
(1) contains no fallback provisions; or
(2) contains fallback provisions that identify neither—
(A) a specific benchmark replacement; nor
(B) a determining person.
(b) Fallback provisions
On the LIBOR replacement date, any reference in the fallback provisions of a LIBOR contract to—
(1) a benchmark replacement that is based in any way on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement; or
(2) a requirement that a person (other than a benchmark administrator) conduct a poll, survey, or inquiries for quotes or information concerning interbank lending or deposit rates;
shall be disregarded as if not included in the fallback provisions of such LIBOR contract and shall be deemed null and void and without any force or effect.
(c) Authority of determining person
(1) In general
Subject to subsection (f)(2), a determining person may select the Board-selected benchmark replacement as the benchmark replacement.
(2) Selection
Any selection by a determining person of the Board-selected benchmark replacement pursuant to paragraph (1) shall be—
(A) irrevocable;
(B) made by the earlier of the LIBOR replacement date and the latest date for selecting a benchmark replacement according to the terms of the LIBOR contract; and
(C) used in any determinations of the benchmark under or with respect to the LIBOR contract occurring on and after the LIBOR replacement date.
(3) No selection
If a determining person does not select a benchmark replacement by the date specified in paragraph (2)(B), the Board-selected benchmark replacement, on and after the LIBOR replacement date, shall be the benchmark replacement for the LIBOR contract.
(d) Conforming changes
(1) In general
If the Board-selected benchmark replacement becomes the benchmark replacement for a LIBOR contract pursuant to subsection (a) or (c), all benchmark replacement conforming changes shall become an integral part of the LIBOR contract.
(2) No consent required
A calculating person shall not be required to obtain consent from any other person prior to the adoption of benchmark replacement conforming changes.
(e) Adjustment by Board
(1) In general
Except as provided in paragraph (2), on the LIBOR replacement date, the Board shall adjust the Board-selected benchmark replacement for each category of LIBOR contract that the Board may identify to include the relevant tenor spread adjustment.
(2) Consumer loans
For LIBOR contracts that are consumer loans, the Board shall adjust the Board-selected benchmark replacement as follows:
(A) During the 1-year period beginning on the LIBOR replacement date, incorporate an amount, to be determined for any business day during that period, that transitions linearly from the difference between the Board-selected benchmark replacement and the corresponding LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the relevant tenor spread adjustment.
(B) On and after the date that is 1 year after the LIBOR replacement date, incorporate the relevant tenor spread adjustment.
(f) Rule of construction
Nothing in this chapter may be construed to alter or impair—
(1) any written agreement specifying that a LIBOR contract shall not be subject to this chapter;
(2) except as provided in subsection (b), any LIBOR contract that contains fallback provisions that identify a benchmark replacement that is not based in any way on any LIBOR value (including the prime rate or the effective Federal funds rate);
(3) except as provided in subsection (b) or (c)(3), any LIBOR contract subject to subsection (c)(1) as to which a determining person does not elect to use a Board-selected benchmark replacement pursuant to that subsection;
(4) the application to a Board-selected benchmark replacement of any cap, floor, modifier, or spread adjustment to which LIBOR had been subject pursuant to the terms of a LIBOR contract;
(5) any provision of Federal consumer financial law that—
(A) requires creditors to notify borrowers regarding a change-in-terms; or
(B) governs the reevaluation of rate increases on credit card accounts under open-ended (not home-secured) consumer credit plans; or
(6) except as provided in section
5804(c) of this title, the rights or obligations of any person, or the authorities of any agency, under Federal consumer financial law, as defined in section
5481 of this title.