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Covenant Monitoring
Each reporting period, financial covenants are tested against the borrower's latest statements — minimum DSCR, maximum LTV, reporting requirements. A breach routes to the officer for a cure plan, waiver, or downgrade.
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Stage detail
- 1Testing
Covenants recomputed against the latest financials as they arrive.
Exit: Covenants tested
- 2Breach
A covenant is out of compliance. Officer decides: cure plan, waiver, or downgrade.
Exit: Cure plan or waiver
Outcomes
- Resolved
Breach cured, waived, or reflected in the risk grade.