Language included in the conditions precedent section of a bank loan commitment letter for certain acquisition financings. SunGard language replaces the customary conditions precedent to initial funding on the closing date that require all representations and warranties for all loan parties to be true and correct and all security interests in collateral to be perfected on the closing date.

The purpose of SunGard language is to reduce the number and scope of conditions precedent to funding the loans so there is more certainty for the seller that the financing will be available and the acquisition will close. This certainty is important when more than one buyer is bidding to acquire a target company and the seller is likely to favor a bid that is more certain to materialize.

For more information on SunGard, see Standard Clause, Commitment Letter: "SunGard" Clause.