Creditors currently using the London Inter-Bank Offered Rate (LIBOR) as the index for variable-rate consumer loans should note that the Federal Reserve Bank of New York is now publishing a new index named the Secured Overnight Financing Rate (SOFR).

SOFR is intended to take the place of LIBOR when LIBOR is discontinued (as the United Kingdom’s Financial Conduct Authority has indicated will occur at the end of 2021). Creditors currently using LIBOR are advised to consult with counsel as to how best to proceed.