View all text of Chapter 55 [§ 5801 - § 5807]
§ 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.)