Define: Financial Close

How is Financial Close defined in a legal contract?

• Financial Close means the accomplishment of the necessary contracts and preparations to authorize the construction of a project and set up its needed funding, all under an independent third-party authority. Confirmation of such setup may take the form of a sworn, notarized certification from an independent engineer. If there’s no external financing, Financial Close refers when the project has adequate funding and has received authorization from the governing body of the funding [organization] to begin full project construction.
  Seen in 903 SEC filings
• Financial Close means the fulfillment of all requirements for the initial fund availability under the financing agreements.
  Seen in 156 SEC filings
• Financial Close means when the project’s agreement and other related financial agreements have been executed and conditions for the project agreement and project financing agreements have been satisfied.
  Seen in 85 SEC filings
• Financial Close means when the seller or one of its affiliates has obtained financial commitments to build the facility, including such commitments from the seller’s owners.
  Seen in 44 SEC filings
• Financial Close means the date on which the financing documents for the project have been executed, become effective, with all necessary conditions for accessing the financing fulfilled and the concessionaire gaining immediate access to such financing.
  Seen in 27 SEC filings
• Financial Close means the date on which financing documents that allow for funding from lenders become effective, giving immediate access to such funds to the concessionaire.
  Seen in 26 SEC filings
• Financial Close means the legally binding commitment to provide or mobilize project funding by equity holders and debt financiers, accounting for a significant part of the estimated project cost.
  Seen in 18 SEC filings

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for ‘Definitions of financial close’ yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Financial Close means authorization and setup of necessary funding under an independent party for initiating project construction.

Relevant Contract Types

• Project Finance Agreement
• Construction Contract
• Private-Public Partnership Agreement
• Investment Agreement
• Joint Venture Agreement

Relevant Circumstances

• Start of a new developmental project
• Undertaking infrastructure upgrades
• Initiating a significant business expansion
• Finalizing equity or debt financing arrangements

Relevant Sectors

• Construction
• Infrastructure
• Oil and Gas
• Renewable Energy
• Financial Services

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Genie Definition 2

Financial Close means when financing agreements gaining access to necessary funds become effective.

Relevant Contract Types

• Loan Agreement
• Debt Financing Agreement
• Equity Financing Agreement
• Asset Purchase Agreement

Relevant Circumstances

• Finalizing a loan agreement
• Securing equity financing
• Completing a company merger or acquisition
• Purchasing significant assets

Relevant Sectors

• Real Estate
• Banking
• Private Equity
• Venture Capital
• Mergers and Acquisitions

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