The Loan Syndications and Trading Association (“LSTA”), a branch group for the syndicated credit market, is constantly working with different members on a concept subnal credit agreement that shows what a SOFR-based credit agreement would look like. The document is still being drafted, but it is useful to take into account the changes that would have to be made to credit agreements to move from LIBOR to SOFR. Since the Financial Conduct Authority announced in 2017 that LIBOR would no longer be available after 2021, new credit agreements and amendments to existing credit agreements contain almost everywhere a form of Fallback language that determines the applicable reference rate when LIBOR is no longer available. The lack of a strong SOFR derivatives market to deduct forward-looking SOFR maturity rates is one of the obstacles to Term SOFR.  LSTA`s credit agreement supports the LIBOR-Fallback language recommended by the Alternative Advisory Committee (“ARRC”) for syndicated loans, published on June 30, 2020, which only updates the well-wired “Fallback” approach and contains daily simple SOFRs as the second replacement rate in case of water.  The highlights of the LSTA credit agreement are as follows: 7. Elimination of illegality – Although they are increasingly rare,16 some credit agreements still provide that a lender is exempt from its obligation to grant LIBOR loans if it becomes illegal for the lender to grant loans at a LIBOR-based rate. . . .