compliance certificate
England, Wales
A certificate accompanying the financial statements given by a borrower to a lender (usually annually and semi-annually) under the terms of a facility agreement.
The form of certificate is usually attached to the facility agreement as a schedule.
Typically, the certificate:
- Sets out details of financial covenants contained in the facility agreement as at a certain date or for a certain period.
- States whether the borrower has complied with the financial covenants.
The certificate may also confirm that no event of default has occurred, or if an event of default has occurred, the nature of that default and any steps being taken to remedy it.
It is dated and generally signed by two directors of the borrower. For audited financial statements, a lender may also require the borrower's auditors to report on and/or sign the certificate.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • certificate of compliance — UK US noun [C] (plural certificates of compliance) ► LAW a document that shows that something obeys a particular law or rule: »Your boat will need a certificate of compliance like an MOT which lasts for four years …   Financial and business terms

  • Compliance and Robustness — Compliance and Robustness, sometimes abbreviated as C R, refers to the legal structure or regime underlying a Digital Rights Management (DRM) system. In many cases, the C R regime for a given DRM is provided by the same company that sells the DRM …   Wikipedia

  • Certificate of Formula Compliance — A Certificate of Formula Compliance (often abbreviated to COFC) is a document used primarily for Health and Beauty Products in international trade. Unlike a Certificate of Origin (which traditionally states from what country the shipped goods… …   Wikipedia

  • Certificate policy — A certificate policy is a document which aims to state what are the different actors of a public key infrastructure (PKI), their roles and their duties. This document is published in the PKI perimeter. When in use with X.509 certificates, a… …   Wikipedia

  • Certificate of Occupancy — A Certificate of Occupancy A Certificate of Occupancy is a document issued by a local government agency or building department certifying a building s compliance with applicable building codes and other laws, and indicating it to be in a… …   Wikipedia

  • Certificate in Investment Performance Measurement - CIPM — A certificate which signifies competency in the area of evaluating the investment performance of investment firms. The Certificate in Investment Performance Measurement is issued by the Chartered Financial Analyst Institute and requires… …   Investment dictionary

  • Type certificate — A Type Certificate, is awarded by aviation regulating bodies to aerospace manufacturers after it has been established that the particular design of a civil aircraft, engine, or propeller has fulfilled the regulating bodies current prevailing… …   Wikipedia

  • Security certificate — This article is about the Canadian legal mechanism. For Internet security certificates, see Public key certificate. In Canadian law, a security certificate is a mechanism by which the Government of Canada can detain and deport foreign nationals… …   Wikipedia

  • The Compliance Team — Inc., is a US for profit organization which runs the Exemplary Provider accreditation programs, a US based alternative to the Joint Commission. [ [ Healthcare Compliance Strategies ] ] It was set up in… …   Wikipedia

  • Aryan certificate — A 1943 Ariernachweis Ahnenpass …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”