GA HB899

Adds a new chapter to Georgia's contract law (Title 13) to address the discontinuance of U.S. dollar LIBOR (London Interbank Offered Rate) by mandating a transition to a recommended benchmark replacement based on SOFR (Secured Overnight Financing Rate), as selected by the Federal Reserve Board, Federal Reserve Bank of New York, or the Alternative Reference Rates Committee.

Requires automatic replacement by operation of law on the LIBOR replacement date for contracts, securities, or instruments that either contain no fallback provisions or contain fallback provisions that result in a LIBOR-based benchmark replacement; grants determining persons optional (but irrevocable) authority to select the recommended benchmark replacement for contracts with certain other fallback provisions.

Prohibits parties from refusing to perform contractual obligations, declaring a breach of contract, unilaterally terminating agreements, or seeking discharge of performance based on the discontinuance of LIBOR or the use of a recommended benchmark replacement.

Establishes a safe harbor shielding any person from liability, damages, or claims in law or equity arising from the selection or use of a recommended benchmark replacement or the implementation of associated conforming changes, and declares such replacement a commercially reasonable substitute and commercially substantial equivalent to LIBOR.

Preserves the right of all requisite parties to a contract to opt out of the chapter's provisions by written agreement, and does not alter contracts that already contain non-LIBOR-based fallback provisions (e.g., prime rate or federal funds rate); effective upon the Governor's approval.