12 USC 5805 - Benchmark for loans

U.S Code last checked for updates: Nov 22, 2024

§ 5805.

Benchmark for loans

(a)

Definitions

In this section:

(1)

Bank

(2)

Covered action

The term “covered action” means—

(A)

the initiation by a Federal supervisory agency of an enforcement action, including the issuance of a cease-and-desist order; or

(B)

the issuance by a Federal supervisory agency of a matter requiring attention, a matter requiring immediate attention; or a matter requiring board attention resulting from a supervisory activity conducted by the Federal supervisory agency.

(3)

Federal financial institutions regulatory agency

(4)

Federal supervisory agency

(5)

Non-IBOR loan

(b)

Benchmarks used by banks

With respect to a benchmark used by a bank—

(1)

the bank, in any non-IBOR loan made before, on, or after March 15, 2022, may use any benchmark, including a benchmark that is not SOFR, that the bank determines to be appropriate for the funding model of the bank; the needs of the customers of the bank; and the products, risk profile, risk management capabilities, and operational capabilities of the bank; provided, however, that the use of any benchmark shall remain subject to the terms of the non-IBOR loan, and applicable law; and

(2)

no Federal supervisory agency may take any covered action against the bank solely because that benchmark is not SOFR.

(Pub. L. 117–103, div. U, § 106, Mar. 15, 2022, 136 Stat. 831.)

cite as: 12 USC 5805