SECTION 3. DEFINITIONS

This section 3 defines certain terms for the purpose of this revenue procedure.

.01 ARRC Fallback . (1) In general . An “ARRC Fallback” is contract language that is recommended by the ARRC and identified in any one of sections 3.01(2)(i) through (ix) of this revenue procedure. ² An ARRC Fallback includes any option or variant provided in the contract language identified in sections 3.01(2)(i) through (ix) of this revenue procedure and excludes any option or variant not provided in the contract language identified in sections 3.01(2)(i) through (ix) of this revenue procedure, even if that option or variant is recommended elsewhere by the ARRC. As of October

9, 2020, the ARRC Fallbacks consist of recommended contract language for adjustable rate mortgages, bilateral business loans, floating rate notes, securitizations, syndicated loans, and variable-rate private student loans and are publicly available at https://www.newyorkfed.org/arrc/fall- backs-contract-language .

(2) Identification of contract language . The contract language contained in each of the following materials is identified in this section 3.01(2)—

(i) Part II: Fallback Language for New Closed-End, Residential Adjustable Rate Mortgages of the document entitled ARRC Recommendations Regarding More Robust LIBOR Fallback Contract Lan- guage for New Closed-End, Residential Adjustable Mortgages, dated November 15, 2019; (ii) The section entitled “Hardwired Approach” Fallback Language of Part II: Fallback Language for New Originations of LIBOR Bilateral Business Loans of the document entitled ARRC Recommenda- tions Regarding More Robust Fallback Language for New Originations of LIBOR Bilateral Business Loans, dated May 30, 2019; (iii) The section entitled Hedged Loan Approach of Part II: Fallback Language for New Originations of LIBOR Bilater- al Business Loans of the document entitled ARRC Recommendations Regarding More Robust Fallback Language for New Originations of LIBOR Bilateral Business Loans, dated May 30, 2019;

(iv) Part II: Fallback Language for New Originations of LIBOR Bilateral Business Loans of the document entitled ARRC Recommendations Regarding More Robust Fallback Language for New Originations of LIBOR Bilateral Business Loans, dated August 27, 2020.

(v) Part II: Fallback Language for New Issuances of LIBOR Floating Rate Notes of the document entitled ARRC Recommendations Regarding More Ro- bust Fallback Language for New Issuanc- es of LIBOR Floating Rate Notes, dated April 25, 2019;

2 The ARRC Fallbacks do not include the amendment approach that the ARRC once recommended for bilateral business loans and syndicated loans. Rather than the more formulaic approach used by the ARRC in the ARRC Fallbacks, the fallback rate under the amendment approach is effectively determined by negotiation of the parties to the contract. As a result, the Treasury Department and the IRS have concluded that the addition and operation of the fallback provisions in the amendment approach should be evaluated under the standards provided in either the Proposed Regulations or, when published, the final regulations.

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(vi) Part II: Fallback Language for New Issuances of LIBOR Securitizations of the document entitled ARRC Recom- mendations Regarding More Robust Fall- back Language for New Issuances of LI- BOR Securitizations, dated May 31, 2019;

(vii) The section entitled “Hardwired Approach” Fallback Language of Part II: Fallback Language for New Origina- tions of LIBOR Syndicated Loans of the document entitled ARRC Recommenda- tions Regarding More Robust Fallback Language for New Originations of LI- BOR Syndicated Loans, dated April 25, 2019; (viii) Part II: Fallback Language for New Originations of LIBOR Syndicated Loans of the document entitled ARRC Recommendations Regarding More Ro- bust Fallback Language for New Origina- tions of LIBOR Syndicated Loans, dated June 30, 2020; and

(ix) Part II: Fallback Language for New Variable-Rate Private Student Loans of the document entitled ARRC Consulta- tion Regarding More Robust LIBOR Fall- back Contract Language for New Variable Rate Private Student Loans, dated June 30, 2020. .02 ISDA Fallback . An “ISDA Fallback” is the set of terms provided in any one of the sections numbered one through six in the version of the Attachment to the ISDA Protocol that is publicly available at https://www.isda.org as of October 9, 2020.