N.Y. General Obligations Law § 18-400: Definitions

§ 18-400. Definitions. As used in this article the following terms

shall have the following meanings:

1. "LIBOR" shall mean, for purposes of the application of this article

to any particular contract, security or instrument, U.S. dollar LIBOR

(formerly known as the London interbank offered rate) as administered by

ICE Benchmark Administration Limited (or any predecessor or successor

thereof), or any tenor thereof, as applicable, that is used in making

any calculation or determination thereunder.

2. "LIBOR discontinuance event" shall mean the earliest to occur of

any of the following:

a. a public statement or publication of information by or on behalf of

the administrator of LIBOR announcing that such administrator has ceased

or will cease to provide LIBOR, permanently or indefinitely, provided

that, at the time of the statement or publication, there is no successor

administrator that will continue to provide LIBOR;

b. a public statement or publication of information by the regulatory

supervisor for the administrator of LIBOR, the United States Federal

Reserve System, an insolvency official with jurisdiction over the

administrator for LIBOR, a resolution authority with jurisdiction over

the administrator for LIBOR or a court or an entity with similar

insolvency or resolution authority over the administrator for LIBOR,

which states that the administrator of LIBOR has ceased or will cease to

provide LIBOR permanently or indefinitely, provided that, at the time of

the statement or publication, there is no successor administrator that

will continue to provide LIBOR; or

c. a public statement or publication of information by the regulatory

supervisor for the administrator of LIBOR announcing that LIBOR is no

longer representative. For purposes of this subdivision two, a public

statement or publication of information that affects one or more tenors

of LIBOR shall not constitute a LIBOR discontinuance event with respect

to any contract, security or instrument that (i) provides for only one

tenor of LIBOR, if such contract, security or instrument requires

interpolation and such tenor can be interpolated from LIBOR tenors that

are not so affected, or (ii) permits a party to choose from more than

one tenor of LIBOR and any of such tenors (A) is not so affected or (B)

if such contract, security or instrument requires interpolation, can be

interpolated from LIBOR tenors that are not so affected.

3. "LIBOR replacement date" shall mean:

a. in the case of a LIBOR discontinuance event described in paragraph

a or b of subdivision two of this section, the later of (i) the date of

the public statement or publication of information referenced therein;

and (ii) the date on which the administrator of LIBOR permanently or

indefinitely ceases to provide LIBOR; and

b. in the case of a LIBOR discontinuance event described in paragraph

c of subdivision two of this section, the date of the public statement

or publication of information referenced therein. For purposes of this

subdivision, a date that affects one or more tenors of LIBOR shall not

constitute a LIBOR replacement date with respect to any contract,

security or instrument that (i) provides for only one tenor of LIBOR, if

such contract, security or instrument requires interpolation and such

tenor can be interpolated from LIBOR tenors that are not so affected, or

(ii) permits a party to choose from more than one tenor of LIBOR and any

of such tenors (A) is not so affected or (B) if such contract, security

or instrument requires interpolation, can be interpolated from LIBOR

tenors that are not so affected.

4. "Fallback provisions" shall mean terms in a contract, security or

instrument that set forth a methodology or procedure for determining a

benchmark replacement, including any terms relating to the date on which

the benchmark replacement becomes effective, without regard to whether a

benchmark replacement can be determined in accordance with such

methodology or procedure.

5. "Benchmark" shall mean 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 in respect of a contract, security or instrument.

6. "Benchmark replacement" shall mean a benchmark, or an interest rate

or dividend rate (which may or may not be based in whole or in part on a

prior setting of LIBOR), to replace LIBOR or any interest rate or

dividend rate based on LIBOR, whether on a temporary, permanent or

indefinite basis, under or in respect of a contract, security or

instrument.

7. "Recommended benchmark replacement" shall mean, with respect to any

particular type of contract, security or instrument, a benchmark

replacement based on SOFR, which shall include any recommended spread

adjustment and any benchmark replacement conforming changes, that shall

have been selected or recommended by a relevant recommending body with

respect to such type of contract, security or instrument.

8. "Recommended spread adjustment" shall mean a spread adjustment, or

method for calculating or determining such spread adjustment, (which may

be a positive or negative value or zero) that shall have been selected

or recommended by a relevant recommending body for a recommended

benchmark replacement for a particular type of contract, security or

instrument and for a particular term to account for the effects of the

transition or change from LIBOR to a recommended benchmark replacement.

9. "Benchmark replacement conforming changes" shall mean, with respect

to any type of contract, security or instrument, any technical,

administrative or operational changes, alterations or modifications that

are associated with and reasonably necessary to the use, adoption,

calculation or implementation of a recommended benchmark replacement and

that:

a. have been selected or recommended by a relevant recommending body;

and

b. if, in the reasonable judgment of the calculating person, the

benchmark replacement conforming changes selected or recommended

pursuant to paragraph a of this subdivision do not apply to such

contract, security or instrument or are insufficient to permit

administration and calculation of the recommended benchmark replacement,

then benchmark replacement conforming changes shall include such other

changes, alterations or modifications that, in the reasonable judgment

of the calculating person:

(i) are necessary to permit administration and calculation of the

recommended benchmark replacement under or in respect of such contract,

security or instrument in a manner consistent with market practice for

substantially similar contracts, securities or instruments and, to the

extent practicable, the manner in which such contract, security or

instrument was administered immediately prior to the LIBOR replacement

date; and

(ii) would not result in a disposition of such contract, security or

instrument for U.S. federal income tax purposes.

10. "Determining person" shall mean, with respect to any contract,

security or instrument, in the following order of priority:

a. any person specified as a "determining person"; or

b. any person with the authority, right or obligation to:

(i) determine the benchmark replacement that will take effect on the

LIBOR replacement date,

(ii) calculate or determine a valuation, payment or other measurement

based on a benchmark, or

(iii) notify other persons of the occurrence of a LIBOR discontinuance

event, a LIBOR replacement date or a benchmark replacement.

11. "Relevant recommending body" shall mean the Federal Reserve Board,

the Federal Reserve Bank of New York, or the Alternative Reference Rates

Committee, or any successor to any of them.

12. "SOFR" shall mean, with respect to any day, the secured overnight

financing rate published for such day by the Federal Reserve Bank of New

York, as the administrator of the benchmark (or a successor

administrator), on the Federal Reserve Bank of New York's website.

13. "Calculating person" shall mean, with respect to any contract,

security or instrument, any person (which may be the determining person)

responsible for calculating or determining any valuation, payment or

other measurement based on a benchmark.

14. "Contract, security, or instrument" shall include, without

limitation, any contract, agreement, mortgage, deed of trust, lease,

security (whether representing debt or equity, and including any

interest in a corporation, a partnership or a limited liability

company), instrument, or other obligation.