Certain Funds Provision (Banking & Finance Glossary)

Summary

A requirement for bids on public companies requiring the Lender making a takeover offer on behalf of a bidder to verify that the bidder has the funds to close the deal. The bid is not subject to any pre-conditions (other than regulatory clearances) so that the bidder is “certain” that funds are available to implement the bid. This is a requirement made by the regulatory agencies in the U.K., certain European regulators and Australia. It is not as common in the United States.