Michael Best attorneys Alec Fraser & Cheryl Aaron were quoted in the American Banker article, "Loans 'ignored' in Libor talks-- so far."
"Absent clear guidance, banks can still get busy preparing for Libor's replacement. The first task should be a thorough review of the documents for all outstanding loans that mature after 2021, said Cheryl Aaron, a banking attorney at Michael Best & Friedrich.
"Banks will need to review their loans to make them explicitly rely on a different rate," Aaron said.
That process typically will invovle a bank directing its outside legal counsel to review the language in loan documents, said Alec Fraser, also a banking attorney at MIchael Best. Many loan documents will already contain language that provides the lender with flexibility to use a replacement rate.
To read the full American Banker article, click here.