A contractual fallback that was set out in the LIBOR wording for the purpose of triggering a switch to the fallback (risk free rate, RFR, plus margin), before LIBOR ceased to be published.

The pre-cessation stage was associated with such a trigger or a triggering circumstance emerged when LIBOR eventually ceased to be “representative”: reflecting the case when a deemed significant number of banks and financial institutions stopped submitting their respective, contributing rates for calculating LIBOR. In which case, the regulators issued a statement of “non-representativeness” before 2021 (cessation year). Later on, LIBOR actually ceased to be published as a representative index rate after June 30, 2023.