Document Covenant Compliance for an Annual Review

What You'll Get

A formatted covenant compliance summary ready to go in the loan file — listing each covenant, the required threshold, the actual result, and the compliance status.

The Prompt

Document covenant compliance for [borrower name] as of [date]: DSCR covenant ≥[X]x, actual [Y]x; leverage covenant ≤[X]x, actual [Y]x; [add any additional covenants]. Annual financial reporting received [date]. Note any exceptions.

Tips

If any covenant is out of compliance, state the exception clearly rather than burying it — loan file documentation that obscures an exception creates bigger problems at exam time than a clearly documented waiver.