LIBOR TRANSITION — PHASE-OUT EFFECTIVE JANUARY 1, 2022
LIBOR TRANSITION–PHASE-OUT EFFECTIVE JANUARY 1, 2022
The use of LIBOR as an interest rate reference will be phased out at the end of 2021. Except for existing “legacy” loans that bear interest based on 1, 3 or 6-month LIBOR, which may continue until June 30, 2023, an alternative interest reference rate will be required.
The transition to a compliant alternative reference rate will require a review of a range of issues including, without limitation, the following:
- State or other law governing the debt or ISDA Swap Derivative transaction; and
- Whether modifying the interest rate reference is considered a “significant” modification under the US Internal Revenue Code and thereby result in US tax consequences to borrower.
If you have any questions, please contact us.
Dir. Dial: 212-448-6220
Dir. Dial: 212-448-6223
Dir. Dial: 212-448-6268