In July 2023, LIBOR-based loans that do not specify a different replacement index will transition based on loan type, as noted below.
Consumer LIBOR-based loans will transition to Consumer Spread-Adjusted Term SOFR, which will be published by Refinitiv, in final form after June 30, 2023, and as described above.
Commercial LIBOR-based loans will transition to Institutional Spread-Adjusted Term SOFR, published by Refinitiv and as described above.
The interest rate on your loan is either currently determined by or would be determined at the end of your fixed-rate period by adding the value of either 1-month, 3-month, 6-month or 12-month LIBOR and the margin, as further specified in your promissory note. When representative LIBOR rates are no longer available, we’ll replace them with the corresponding tenor of either Consumer Spread-Adjusted Term SOFR or Institutional Spread-Adjusted Term SOFR as determined by your loan type and promissory note. The new index will be used to calculate future interest rate and payment changes for your loan. We’ll make this transition for you in accordance with the terms of your loan documents. You don’t need to take any action.
If you have any questions on which index and tenor your loan will be transitioned to, please reach out to your Relationship Manager.