
- Because of regulatory concerns with manipulation of LIBOR, the industry has discontinued the use of LIBOR as a benchmark index and adopting more reliable indexes for new instruments.
- After June 30, 2023, the LIBOR index that is used to determine the interest rate charged for some adjustable-rate loans, will no longer be available. This will affect some adjustable-rate mortgage (ARM) loans and lines of credit that use the LIBOR index to determine the interest rate.
- If your adjustable-rate loan is based on the LIBOR index, a new index will be assigned to your loan at the next scheduled interest rate change date that occurs on your loan after June 30, 2023.
- The President signed the Adjustable Interest Rate (LIBOR) Act (the “Act”) into law in March 2022. Under its terms, most of SouthState’s LIBOR based loans will transition to SOFR as provided by the Act and the final rule adopted by the Board of Governors of the Federal Reserve.