{"identifier":"/us/usc/t12/s5801","title":12,"num":"\u00a7\u202f5801.","heading":"Findings and purpose","text":"\u00a7\u202f5801.\nFindings and purpose\n(a)\nFindings\nCongress finds that\u2014\n(1) LIBOR is used as a benchmark rate in more than $200,000,000,000,000 worth of contracts worldwide;\n(2) a significant number of existing contracts that reference LIBOR do not provide for the use of a clearly defined or practicable replacement benchmark rate when LIBOR is discontinued; and\n(3) the cessation or nonrepresentativeness of LIBOR could result in disruptive litigation related to existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate.\n(b)\nPurpose\nIt is the purpose of this chapter\u2014\n(1) to establish a clear and uniform process, on a nationwide basis, for replacing LIBOR in existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement benchmark rate, without affecting the ability of parties to use any appropriate benchmark rate in new contracts;\n(2) to preclude litigation related to existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement benchmark rate;\n(3) to allow existing contracts that reference LIBOR but provide for the use of a clearly defined and practicable replacement rate, to operate according to their terms; and\n(4) to address LIBOR references in Federal law.","url":"https://projectusc.org/usc/t12/s5801.html","content":[{"t":"sec","id":"/us/usc/t12/s5801","children":[{"t":"num","text":"\u00a7\u202f5801."},{"t":"heading","text":"Findings and purpose"},{"t":"subsec","id":"/us/usc/t12/s5801/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Findings"},{"t":"chapeau","text":"Congress finds that\u2014"},{"t":"para","id":"/us/usc/t12/s5801/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" LIBOR is used as a benchmark rate in more than $200,000,000,000,000 worth of contracts worldwide;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5801/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" a significant number of existing contracts that reference LIBOR do not provide for the use of a clearly defined or practicable replacement benchmark rate when LIBOR is discontinued; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5801/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" the cessation or nonrepresentativeness of LIBOR could result in disruptive litigation related to existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s5801/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Purpose"},{"t":"chapeau","text":"It is the purpose of this chapter\u2014"},{"t":"para","id":"/us/usc/t12/s5801/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" to establish a clear and uniform process, on a nationwide basis, for replacing LIBOR in existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement benchmark rate, without affecting the ability of parties to use any appropriate benchmark rate in new contracts;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5801/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" to preclude litigation related to existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement benchmark rate;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5801/b/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" to allow existing contracts that reference LIBOR but provide for the use of a clearly defined and practicable replacement rate, to operate according to their terms; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5801/b/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" to address LIBOR references in Federal law.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}