Non-representative
Interest rates - reference rates - LIBOR transition.
A rate losing representativeness means it is considered by the regulator to have ceased being representative of the underlying market or economic reality it is supposed to represent, and that representativeness will not be restored.
A rate becoming non-representative in this way may be a trigger for the application of fallback rate provisions, rate switch provisions, or clauses providing for the re-negotiation of the agreement in question to replace the relevant rate, all of which may appear in LIBOR-referencing loans.
If a rate such as LIBOR loses representativeness, regulated financial institutions will be prevented from
using it in many contexts by the EU and UK regulatory framework that governs the use of important benchmarks.
For all practical purposes, this means that if a LIBOR rate becomes non-representative, the consequences are no different to had it ceased.
(Source - The LMA’S recommended forms of facility agreement for loans referencing risk-free rates - A Borrower’s Guide - Slaughter & May - ACT - May 2021 - p11)
