Adjustable Interest Rate (LIBOR) Act of 2021

Bill 117 HR 4616, also known as the Adjustable Interest Rate (LIBOR) Act of 2021, is a piece of legislation introduced in the US Congress. The purpose of this bill is to address the impending discontinuation of the London Interbank Offered Rate (LIBOR) as a benchmark interest rate.

The bill aims to provide a framework for financial institutions to transition away from using LIBOR as a reference rate for adjustable-rate mortgages, student loans, and other financial products. It establishes a process for identifying alternative reference rates and ensures that consumers are protected during this transition period.

Additionally, the bill includes provisions to prevent disruptions in the financial markets and to promote transparency and fairness in the transition away from LIBOR. It also requires federal agencies to coordinate with each other and with state regulators to ensure a smooth transition for consumers and financial institutions. Overall, the Adjustable Interest Rate (LIBOR) Act of 2021 seeks to address the challenges posed by the discontinuation of LIBOR and to provide a clear and orderly transition to alternative reference rates. It aims to protect consumers and ensure the stability of the financial system during this period of change.