Now that we have all been properly terrified about the imminent demise of LIBOR as an index, commercial and consumer lenders and other stakeholders are now considering approaches to develop effective replacement strategies. Of particular importance is the recognition that an institution’s litigation risk is potentially very complicated—requiring an analysis of the role being played by the financial institution in regard to the replacement of LIBOR as an index, the language of replacement language and related legal risks.
This Roundtable provided an in-depth discussion of Dorsey’s suggestions and recommendations to commence a project plan to identify legal, litigation and related risks, including: (a) an analytical process to identify an institution’s LIBOR exposure (including the use of AI); (b) substitution authority; (c) forward-looking loan language; (d) the role of an institution as creating risk; and (e) strategies to minimize potential litigation exposure.
Joseph Lynyak, Partner, Dorsey & Whitney LLP
Betsy Parker, Partner, Dorsey & Whitney LLP
Jim Langdon, Partner, Dorsey & Whitney LLP
Mark Jutsen, Partner, Dorsey & Whitney LLP
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**NOTE: Watching this recording does not allow the user to obtain CLE, CPD, CPE or HR credits.