Indiana Code 28-10-2-18. Fallback provisions permitting or requiring a benchmark replacement based on LIBOR; determining person authorized to select recommended benchmark replacement; conditions
(1) is based in any way on any LIBOR value; or
Terms Used In Indiana Code 28-10-2-18
- benchmark: means an index of interest rates or dividend rates that is used, in whole or in part, as the basis of, or as a reference for, calculating or determining any valuation, payment, or other measurement under or with respect to a contract, security, or instrument. See Indiana Code 28-10-2-2
- benchmark replacement: means :
Indiana Code 28-10-2-3
- Contract: A legal written agreement that becomes binding when signed.
- fallback provisions: means terms that are included in a contract, security, or instrument and that set forth a methodology or procedure for determining a benchmark replacement, including any terms relating to the effective date of the benchmark replacement, regardless of whether a benchmark replacement can be determined in accordance with the specified methodology or procedure. See Indiana Code 28-10-2-8
- LIBOR: means United States Dollar LIBOR (formerly known as the London Interbank Offered Rate), as administered by Intercontinental Exchange Benchmark Administration Limited (or by any predecessor or successor entity), that is used in making any calculation or determination under a particular contract, security or instrument. See Indiana Code 28-10-2-9
- LIBOR discontinuance event: means the earliest to occur of any of the following:
Indiana Code 28-10-2-10
- LIBOR replacement date: means the following:
Indiana Code 28-10-2-11
(A) a commercially reasonable replacement for and a commercially substantial equivalent to LIBOR;
(B) a reasonable, comparable, or analogous term for LIBOR under or with respect to the contract, security, or instrument; or
(C) based on a methodology or information that is similar or comparable to LIBOR.
(b) With respect to any contract, security, or instrument to which this section applies, a determining person is authorized, but is not required, to select on or after the occurrence of a LIBOR discontinuance event the recommended benchmark replacement as the benchmark replacement for the contract, security, or instrument. A selection of the recommended benchmark replacement under this section must be:
(1) irrevocable;
(2) made by the earlier of:
(A) the LIBOR replacement date; or
(B) the latest date for selecting a benchmark replacement under the terms of the contract, security, or instrument; and
(3) used in any determination of the benchmark that is made under or with respect to the contract, security, or instrument on or after the LIBOR replacement date.
As added by P.L.67-2022, SEC.1.