The Federal Reserve Board on Friday adopted a final rule that implements the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR (Secured Overnight Financing Rate) that will replace LIBOR in certain financial contracts after June 30, 2023. The final rule is substantially similar to the proposal with certain clarifying changes made in response to comments.
LIBOR, formerly known as the London Interbank Offered Rate, was the dominant benchmark rate used in financial contracts for decades. However, it was fragile and subject to manipulation, and U.S. dollar LIBOR panels will end after June 30, 2023.
Congress enacted the LIBOR Act to provide a uniform, nationwide solution for so-called tough legacy contracts that do not have clear and practicable provisions for replacing LIBOR after June 30, 2023. As required by the law, the final rule identifies replacement benchmark rates based on SOFR to replace overnight, one-month, three-month, six-month, and 12-month LIBOR in contracts subject to the Act. These contracts include U.S. contracts that do not mature before LIBOR ends and that lack adequate “fallback” provisions that would replace LIBOR with a practicable replacement benchmark rate.
In response to comments, the final rule restates safe harbor protections contained in the LIBOR Act for selection or use of the replacement benchmark rate selected by the Board, and clarifies who would be considered a “determining person” able to choose to use the replacement benchmark rate selected by the Board for use for certain LIBOR contracts. Consistent with the LIBOR Act, the final rule also ensures that LIBOR contracts adopting a benchmark rate selected by the Board will not be interrupted or terminated following LIBOR’s replacement.
The final rule will be effective 30 days after publication in the Federal Register.
(Dec. 23, 2021) When credit unions open their doors for business on Jan. 3, a revised regulatory landscape will stretch before them with three regulatory changes that took effect Jan. 1: a new “risk-based capital” (RBC) rule, a new “complex credit union leverage ratio” (CCULR), and a new reference rate to replace the then-defunct London Interbank Offered Rate (LIBOR).
The RBC rule was approved by NCUA more than six years ago (and amended more than three years ago). Its aim was to require credit unions taking certain risks to hold capital commensurate with those risks. It restructured the agency’s existing “prompt correction action” (PCA) rules, including by adding a risk-based capital ratio (rather than a risk-based net worth ratio) for federally insured credit unions.
The effective date of the rule was delayed repeatedly by NCUA, as the agency considered (and later made) changes to the asset size for defining a “complex” credit union, which is affected by the RBC rule, and restructured the rule in consideration of recent events.
The agency first issued its risk-based capital proposal for “complex” credit unions – then defined as those with more than $100 million in assets – in 2014, with implementation slated 18 months after the rule would have been finalized. A revised proposed rule was issued in 2015 and finalized that October with an effective date of Jan. 1, 2019. That final rule replaced the risk-based net worth ratio contained in the 2015 rule with a new risk-based capital ratio for federally insured credit unions, which the NCUA called comparable to the regulatory risk-based capital measures used by the federal banking agencies: the Federal Deposit Insurance Corp. (FDIC), Federal Reserve, and Office of the Comptroller of Currency (OCC).
However, in 2018 the NCUA Board revised its definition of “complex” credit unions to include only those credit unions with more than $500 million in assets and delayed the rule’s implementation again, to Jan. 1, 2020. A year later (in 2019) the agency pushed the rule’s implementation date to Jan. 1, 2022. The delay was necessary, the agency said, to review potential changes to credit union capital such as subordinated debt authority; capital requirements for asset securitization; and an option like the community bank leverage ratio (CBLR) that had since been adopted for banks by federal banking agencies.
The board, in fact, addressed all those issues – including, just last week, finalizing the CCULR which it described as an “off-ramp” for eligible complex credit unions from the RBC rule. The rule also took effect Jan. 1; it was approved just last week.
That final rule creates a framework that allows “complex” credit unions opting in to maintain the CCULR instead of risk-based capital. Under CCULR, a complex credit union – one having more than $500 million in assets – may qualify to opt in to the CCULR framework if it has a minimum net worth ratio of 9%. this minimum requirement for a classification of “well capitalized” under the CCULR framework – modeled on federal banking agencies’ community bank leverage ratio (CBLR) – is higher than the 7% minimum ratio required under prompt corrective action (PCA) but lower than the 10% required under risk-based capital. The CCULR final rule also amends provisions of the 2015 risk-based capital final rule. The agency notes that based on June 30, 2021, call report data, about 70% of complex credit unions (down from 90% pre-pandemic) qualify to use the CCULR framework and would be well capitalized under a 9% calibration.
(Also taking effect Jan. 1: changes to NCUA’s rule on subordinated debt, aimed at easing low-income credit unions’ participation in Treasury’s Emergency Capital Investment Program (ECIP), which was created to help communities hard hit economically by the COVID-19 pandemic. The revisions amend the definition of “grandfathered secondary capital” to include any secondary capital issued to the U.S. government or one of its subdivisions under a secondary capital application approved before Jan. 1, 2022, regardless of the date issued. The final rule also extends the expiration of regulatory capital treatment for such secondary capital issuances to the later of 20 years from the date of issuance or Jan. 1, 2042. According to the NCUA, Treasury on Dec. 14 said 85 credit unions will receive about $2 billion in funding that can be used as secondary capital.)
Finally, also effective Jan. 1: LIBOR can no longer be used as a reference rate for a wide variety of financial instruments: from derivative contracts to consumer loans written after Jan. 1 (existing contracts may use LIBOR until June 30. 2023, when LIBOR will be completely phased out). Financial institutions and others will have to use an alternative, which (for derivatives and many other financial contracts) is the Federal Reserve-developed Secured Overnight Financing Rate (SOFR), a broad Treasuries repurchase financing rate.
NCUA has not told credit unions they must use SOFR for their consumer, student, commercial, real estate or other loans with potential LIBOR exposure. Instead, the agency has left that up to each institution to determine for itself (as long as the credit union determines the rate is appropriate for its risk management and member needs).
The agency has also advised that all LIBOR-based contracts that mature after Dec. 31 (one-week and two-month) and June 30, 2023 (one-, three-, six- and twelve-month) should include contractual language that provides for use of a robust fallback rate.
(Dec. 10, 2021) Creditors must select by April 1 replacement indices for existing LIBOR-linked consumer loans, which include closed- and open-end credit provisions that require a link to an index comparable to the soon-to-be-defunct rate, according to a final rule issued this week by the CFPB.
LIBOR (the London Interbank Offered Rate) is scheduled to be discontinued after Dec. 31; no new contracts or loans may be agreed to using LIBOR after that date. After June 2023, LIBOR may no longer be used for any existing financial contracts.
CFPB said its final rule includes closed-end credit provisions that require creditors to choose an index comparable to LIBOR when changing the index of a variable rate loan, or consider it a refinancing for purposes of its Regulation Z (which implements the Truth in Lending Act (TILA)).
The bureau said that, to help creditors determine a comparable index for closed-end loans, the rule identifies certain spread-adjusted indices based on the Secured Overnight Financing Rate (SOFR), a LIBOR alternative developed by the Federal Reserve-sponsored Alternative Reference Rates Committee (ARRC). The indices are intended for consumer products as examples to illustrate a reference rate that would be comparable to replace 1-month, 3-month, or 6-month tenors of USD LIBOR, according to CFPB.
Another closed-end credit provision of the final rule, the bureau said, includes a “non-exhaustive” list of factors for creditors to help determine whether a replacement index meets the Regulation Z “comparable” standard regarding a particular LIBOR index. The rule also updates post-consummation disclosure sample forms for certain adjustable-rate mortgage loan products replacing LIBOR references with a SOFR index, CFPB said.
Open-end loans, CFPB said, would be covered by the rule under LIBOR-specific provisions to permit creditors or card issuers for home equity lines of credit (HELOCs) and credit card accounts to replace the LIBOR index and adjust the margin used to set a variable rate on or after April 1, 2022, if certain conditions are met.
The conditions, CFPB said, include that the creditor or card issuer generally must choose a replacement index which has historical fluctuations that are substantially similar to those of the LIBOR index and ensure that the new interest rate or APR is substantially similar.
Another “non-exhaustive list” of factors to consider is provided to creditors and card issuers when they are determining whether a replacement index meets the Reg Z “historical fluctuations are substantially similar” standard regarding a particular LIBOR index, and identifies certain SOFR-based spread-adjusted indices recommended by the ARRC for consumer products and the prime rate as examples of indices that meet this standard, the bureau said.
“The rule also finalizes change-in-terms notice requirements proposed by the Bureau for disclosing margin reductions for HELOCs and credit card accounts when LIBOR is replaced,” CFPB said. To help consumers understand how creditors will determine rate changes in the variable rates for their loans, the disclosure requirements will be effective April 1, 2022, and have a mandatory compliance date of Oct. 1, 2022.
The rule also amends Regulation Z to address how the requirement to reevaluate rate increases on credit card accounts applies to the transition from using a LIBOR index to a replacement index.
The bureau noted it did not include a SOFR-based spread-adjustment replacement index for one-year USD LIBOR, saying it was “reserve judgment.”
“Once the Bureau knows which SOFR-based spread-adjusted index the ARRC will recommend for replacing the 1-year USD LIBOR index for consumer products, the Bureau will consider whether that index meets the comparability and ‘historical fluctuations are substantially similar’ standards and, if so, whether to codify such determinations in a supplemental final rule,” CFPB stated.
The agency also released an updated set of frequently asked questions (FAQs) to help creditors address other LIBOR transition topics, regulatory questions, and general implementation considerations.
LINKS:
Final rule: Facilitating the LIBOR Transition (Regulation Z).
(Dec. 10, 2021) Minimizing the risk of disruptive litigation and adverse economic impacts associated with the transition away from the LIBOR reference rate is the aim of legislation passed by the House Wednesday.
The Adjustable Interest Rate (LIBOR) Act of 2021 (H.R. 4616), passed on voice vote, was sponsored by Rep. Brad Sherman (D-Calif.). In addition to minimizing litigation and economic risks, supporters say the bill will encourage a fair transition for financial contracts that do not consider the permanent cessation of LIBOR by June 2023 in existing contracts, and have no workable fallbacks. LIBOR as a reference rate may no longer be used for new loans or other financial contracts after Dec. 31.
The bill states its intent is to establish a clear and uniform basis nationwide for replacing LIBOR in existing contracts whose terms do not provide for the use of a clearly defined or practicable replacement benchmark rate, without affecting the ability of parties to use any appropriate benchmark rate in new contracts.
The legislation, similar to a statute enacted earlier this year in New York, now heads to the Senate for consideration.
LINK:
H.R. 4616, The Adjustable Interest Rate (LIBOR) Act of 2021
(Oct. 22, 2021) Actions credit unions, banks and nonbanks alike should consider taking to ensure safe-and-sound practices during the transition away from the LIBOR reference rate were outlined in joint guidance this week by NCUA, the federal bank regulators, state credit union and bank regulators and the CFPB.
NCUA covered the joint statement in letter to credit unions (LTCU) 21-CU-10, Interagency Statement on LIBOR Transition. In the letter, NCUA noted that the regulators are emphasizing the expectation that credit unions and other supervised institutions with exposure to LIBOR (the London Interbank Offered Rate) will continue to progress toward an orderly transition away from LIBOR toward an alternative reference rate.
“The NCUA encourages all federally insured credit unions to transition away from using U.S. dollar LIBOR as a reference rate as soon as possible, but no later than Dec. 31, 2021, and to ensure existing contracts have robust fallback language that includes a clearly defined alternative reference rate,” the NCUA letter states.
LIBOR will be discontinued for new contracts after Dec. 31; existing contracts using LIBOR after that date must transition to an alternative by June 30, 2023.
CFPB said it joined the letter to highlight the consumer risks posed by the discontinuation of LIBOR, and urged credit unions, banks and nonbanks alike to continue their efforts to transition to alternative reference rates to mitigate consumer protection.
“The financial services industry uses LIBOR as a reference interest rate for many consumer financial products including mortgage loans, reverse mortgages, home equity lines of credit, credit cards, and student loans,” CFPB said in a press release. “The approaching discontinuation of most LIBOR tenors in June 2023 presents financial, legal, operational, and consumer protection risks. Additionally, consumers may not know when the transition from LIBOR will occur or how institutions will calculate their interest rates if they do not issue required disclosures to consumers.”
The regulators’ joint statement, among other things, urges financial institutions to ensure that no new contracts utilizing a LIBOR index reference rate are entered into after Dec. 31 – the day LIBOR becomes defunct. NCUA and the other regulators outlined supervisory considerations for financial institutions in transitioning away from LIBOR. Among them: clarification on the meaning of new LIBOR contracts, which stated that contracts entered into on or before Dec. 31 should either use a reference rate other than LIBOR or have fallback language that provides for use of a “strong and clearly defined alternative reference rate after LIBOR’s discontinuation.”
The statement also outlines considerations when assessing the appropriateness of alternative reference rates, expectations for fallback language and more.
Also this week, the OCC released an updated self-assessment tool to aid banks in their LIBOR transition. According to the agency, the tool is aimed at evaluating bank preparedness to deal with the end of the rate, particularly by helping banks evaluate their management processes for identifying and mitigating LIBOR transition risks.
LINKS:
NCUA LTCU 21-CU-10: Interagency Statement on LIBOR Transition
Joint Statement on Managing the LIBOR Transition
CFPB Joins Other Financial Regulatory Agencies in Issuing Statement on Discontinuation of LIBOR
LIBOR Transition: Updated Self-Assessment Tool for Banks
(Oct. 15, 2021) It’s “time to move” from LIBOR now by slowing the use of the reference rate by year’s end to foster a smooth completion of the rate’s overall use, according to a Federal Reserve-sponsored group that has developed an alternative rate.
LIBOR – the London Interbank Offered Rate – is used widely in derivative contracts, and other financial vehicles, as a reference rate. It is also used by many financial institutions as a reference rate for adjustable rate mortgages and student loans (particularly among credit unions).
However, the rate is being discontinued for new contracts after Dec. 31 (and completely defunct for existing contracts after June 30, 2023). “As a result, USD LIBOR’s liquidity and usefulness will likely diminish as new use comes to an end,” the Alternative Reference Rate Committee (ARRC) stated in a press release this week.
NCUA and the federal banking agencies have issued supervisory guidance to credit unions and banks reminding them that LIBOR will be discontinued after year’s end, and that the institutions should take steps to find alternative rates. ARRC said its recommendation is consistent with steps that “it understands a number of firms are already taking to significantly slow new USD LIBOR activity ahead of year-end in order to ensure that they will be in a position to meet the supervisory guidance.”
ARRC has recommended, as an alternative, the Secured Overnight Financing Rate (SOFR), which the group helped to develop. The Federal Reserve has recommended that firms switch to SOFR for such items as derivative contracts but has made no such recommendation for specific use of SOFR for loans (NCUA and the other banking agencies have likewise made no specific recommendation).
LINK:
(Oct. 8, 2021) LIBOR is coming to an end – for the most part, at the end of this year – and it’s time to stop “magical thinking” that it won’t, Federal Reserve Board Vice Chair for Supervision Randal Quarles said this week. In remarks to the Structured Finance Association Conference in Las Vegas this week, Quarles said the “reign” of the London Interbank Offered Rate (LIBOR) will end at year’s end “and it will not come back.” He noted that a handful of financial firms have said that they may want more time to evaluate potential alternative rates. “There is no more time, and banks will not find LIBOR available to use after year-end no matter how unhappy they may be with their options to replace it,” he said. Some credit unions use LIBOR as a reference rate, particularly for student loans … Monday is a holiday for some (Columbus Day/Indigenous People’s Day); have a terrific weekend!
LINK:
(Aug. 27, 2021) Concern over reports that nonfinancial corporations are not, in most cases, being offered alternatives to the soon-to-be-defunct LIBOR reference rate was expressed by leaders of agencies overseeing financial markets in a letter released this week.
The letter was signed by Treasury Secretary Janet Yellen, Federal Reserve Board Chair Jerome H. (“Jay”) Powell, Securities and Exchange Commission Chair Gary Gensler, Federal Reserve Bank of New York President and CEO John C. Williams, and Commodity Futures Trading Commission Acting Chairman Rostin Behnam.
The communiqué followed up on a meeting among them and representatives of nonfinancial corporate stakeholders on the transition away from LIBOR, now scheduled for discontinuation at the end of this year (however, existing contracts will be allowed to use LIBOR until June 30, 2023).
“The transition is at a critical juncture, and we were thus concerned to hear your members report that nonfinancial corporations are, in most cases, not yet being offered such alternatives despite the short amount of time left in the transition,” the leaders wrote. “Accordingly, we invite you to continue to share your experiences and views with us as the transition, and the dialogue with your lenders, continues.”
In April, the nonfinancial corporate stakeholders – the Association for Financial Professionals, National Association of Corporate Treasurers, and the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness – wrote of their concern that non-financial corporates (NFCs) were challenged to obtain loan agreements based on alternatives to LIBOR, including the Secured Overnight Financing Rate (SOFR) even after those NFCs had indicated that loan agreements based on SOFR would be their preferred choice.
The group requested a meeting with the federal regulators to express their concerns in person.
(SOFR was developed by a group sponsored by the Federal Reserve the Federal Reserve Bank of New York; the Fed, including Vice Chairman for Supervision Randal Quarles, have said repeatedly that they recommend use of SOFR.)
The regulators agreed that the LIBOR transition presents operational, technological, accounting, tax and legal challenges to Main Street companies, and that firms
“The official sector has consistently supported a transition from LIBOR that leads to a more stable financial system, while also meeting the needs of all the parties who will be impacted by it, including nonfinancial corporate and noncorporate business borrowers, consumers, and investors, as well as financial institutions,” the letter from the regulators stated. “We have stressed the importance of reference rates built on deep, liquid markets that are not susceptible to manipulation.
“Although the official sector is not positioned to adjudicate the selection of reference rates between banks and their commercial customers, borrower preferences and needs clearly have a significant role to play in the selection of such rates,” the regulators wrote.
NCUA, for example, has not endorsed a specific alternative rate to LIBOR, including SOFR. LIBOR is used widely among credit unions for determining rates for adjustable rate mortgages and student loans.
LINK:
Treasury Department Releases Letter to Nonfinancial Corporate Stakeholders on LIBOR Transition
(July 30, 2021) Market participants now “have every tool they need to transition from LIBOR,” the vice chair of the Federal Reserve said this week, as a Fed-backed group developing an alternative to the widely used reference rate announced it had made a formal recommendation for the replacement, the Secured Overnight Financing Rate (SOFR). The recommendation came after a change in interdealer trading conventions that were adopted Monday (July 26), which outlined loan conventions and use cases for how best to use the SOFR. Federal Reserve Board Vice Chair for Supervision Randal Quarles also said that “all firms should be moving quickly to meet our supervisory guidance advising them to end new use of LIBOR this year.” LIBOR will no longer be used for new contracts beginning Jan. 1 and will be discontinued for existing contracts after June 30, 2023. Separately, the federal banking regulators Thursday jointly published FAQs concerning the regulatory capital treatment of capital instruments whose terms reference LIBOR … The Treasury Department and IRS Thursday announced that eligible employers can claim tax credits equal to the wages paid for providing paid time-off to employees to take a family or household member or certain other individuals to get vaccinated, or to care for a family or household member or certain other individuals recovering from the vaccination. Comparable tax credits are also available for self-employed individuals, the agencies said. In April, Treasury and the IRS announced eligible employers, such as businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, could receive paid leave tax credits available under the American Rescue Plan Act of 2021 (ARP) for providing leave for each employee receiving the vaccine and for any time needed to recover from the vaccine.
LINKS:
ARRC Formally Recommends Term SOFR
OCC — Libor Transition: Regulatory Capital Rule Frequently Asked Questions
To Enable More Vaccinations, Treasury Expands Paid Leave Tax Credit
(June 4, 2021) Steps that should be taken now and through the rest of the year by those with exposure to the soon-to-be-defunct LIBOR are outlined in a “roadmap” issued this week by the Financial Stability Board (FSB), an international group of financial regulators.
In its “Global Transition Roadmap for LIBOR,” FSB stated that continued reliance of global financial markets on the London Interbank Offered Rate reference rate “poses clear risks to global financial stability.” LIBOR has been a widely used reference rate for such financial products as adjustable-rate mortgages and student loans (especially at credit unions, according to NCUA). The FSB is made up of regulators from several countries, including the U.S. Federal Reserve. Board Vice Chair for Supervision Randal Quarles chairs the group.
The steps outlined in the roadmap (referred to as the GTR), the FSB said, are considered “prudent steps to take to ensure an orderly transition by end-2021” and are intended to supplement existing industry and regulatory timelines and milestones.
Among the steps that the roadmap recommends that firms should already have taken to prepare for LIBOR’s demise are:
- Identification and assessment of all existing LIBOR exposures, including understandings of which LIBOR settings place a continuing reliance on the firm after end-2021, by currency and tenor, and; what fallback arrangements those contracts currently have in place.
- Identification of other dependencies on LIBOR outside of its use in financial contracts – for example, use in financial modelling, discounting and performance metrics, accounting practices, infrastructure, or non-financial contracts (e.g. in late-payment clauses).
- Agreement on a project plan, including specific timelines and resources to address or remove any LIBOR reliance identified, to transition in advance of the end of 2021 including clear governance arrangements.
The steps also include those that should be taken by mid-year, by year-end and by June 2023 (for those firms that are winding down legacy contracts).
In addition to the GTR, FSB also released:
- A paper reviewing overnight risk-free rates and term rates;
- A statement on the use of the ISDA spread adjustments;
- A statement encouraging authorities to set “globally consistent expectations that regulated entities should cease the new use of LIBOR in line with the relevant timelines for that currency, regardless of where those trades are booked.”
LINKS:
Global Transition Roadmap for LIBOR
FSB issues statements to support a smooth transition away from LIBOR by end 2021
(May 28, 2021) An overview of the letter to credit unions on the future of the LIBOR reference rate is the latest summary to be posted by NASCUS; it is available to members only.
Last week, NCUA issued the letter (21-CU-03) essentially telling credit unions stop using LIBOR (the London Interbank Offered Rate) as soon as possible. Failure by credit unions to prepare for disruptions of LIBOR “could undermine a federally insured credit union’s financial stability, and safety and soundness,” the NCUA letter stated. “The LIBOR transition is a significant event that credit unions should manage carefully.”
The agency last week also issued on the same subject its first “Supervisory Letter” of the year, which NCUA said “provides the supervision framework examiners will use to evaluate a credit union’s risk management processes and planning regarding the transition from LIBOR.”
The supervisory letter outlines the background, potential LIBOR exposure for credit unions, and examination considerations – but offers no endorsement of a specific replacement for USD LIBOR.
LINK:
NASCUS Summary, Evaluating LIBOR Transition Plans (members only)
(May 21, 2021) Stopping the use of LIBOR as a reference rate as soon as possible as a year-end expiration date looms is encouraged for all federally insured credit unions, NCUA said in letters released this week.
In the first (a Letter to Credit Unions (LTCU)), the agency said failure by credit unions to prepare for disruptions of the London Interbank Offered Rate (LIBOR) “could undermine a federally insured credit union’s financial stability, and safety and soundness.” LIBOR is a reference rate used by many financial institutions – including credit unions – to set rates on such financial products as adjustable mortgages and student loans (which NCUA said “make up a significant portion of LIBOR-indexed loans owned by credit unions.”) The rate is scheduled to be phased out at the end of this year (legacy contracts using the rate are scheduled to stop using the rate by mid-2023) because assumptions it uses have become unreliable in reflecting current economic and financial conditions.
“The LIBOR transition is a significant event that credit unions should manage carefully,” the LTCU, signed by Board Chairman Harper, states. It notes that the FFIEC has issued a statement which recommends that new financial contracts use a reference rate other than LIBOR or have robust fallback language that includes a clearly defined alternative reference rate after LIBOR’s discontinuation.
Harper said the second letter released Monday by the agency, a “Supervisory Letter” (SL No. 21-01 – the first of the year), “provides the supervision framework examiners will use to evaluate a credit union’s risk management processes and planning regarding the transition from LIBOR.” The guidance in that letter, Harper stated, applies to all federally insured credit unions.
The supervisory letter outlines the background, potential LIBOR exposure for credit unions, and examination considerations – but offers no endorsement of a specific replacement for USD LIBOR. (That includes use of the Federal Reserve-developed Secured Overnight Financing Rate (SOFR), which was created specifically as a replacement for LIBOR.)
“A credit union may use a reference rate for its loans and member shares that it determines is appropriate for its risk management and member needs,” the supervisory letter states. “All LIBOR-based contracts that mature after December 31, 2021 (one-week and two-month) and June 30, 2023 (one-, three-, six- and 12-month) should include contractual language that provides for use of a robust fallback rate.”
LINKS:
NCUA Letter to Credit Unions 21-CU-03: LIBOR transition