Guidance on Transition to ICE LIBOR Rates
March 14, 2014
On February 1, 2014, ICE Benchmark Administration Limited replaced the British Banking Association (BBA) as administrator of the London Interbank Offered Rate (LIBOR). As of March 1, 2014, the definition of LIBOR Index Rate in the Multifamily Adjustable Rate Note was changed to refer to ICE’s LIBOR rate, as displayed on the LIBOR Index Page.
Adjustable Rate Notes that were documented on a Note with a modification date prior to March 1, 2014, (Pre-March 1 Notes) will still refer to the “BBA LIBOR rate,” which no longer exists. However, those notes also state that if the BBA ceased to set or publish a LIBOR rate, the lender will designate an alternative index. This article is our designation of an alternative index.
All references to the BBA’s LIBOR rate in Pre-March 1 Notes should be read as referring to ICE’s LIBOR rate as displayed on the Bloomberg L.P., page “BBAM” or any page that replaces BBAM.
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