How to add a Financial Covenant?

GoDocs can incorporate Lender-specific, or Loan-specific, financial covenants in the loan documents. These covenants will appear on or about section D.4 of the Loan Agreement. The Loan Agreement section will explain the financial covenant, while the Certificate of Compliance exhibit can be used by the Lender for the Borrower to state if they are complying or not with the covenant for a given reporting period. 

Please use the Example section below for guidance. The Example is mapped by color that shows an example of how the GoDocs Default Debt Service Coverage Ratio Requirement (Property) is structured as well as where and how your custom covenant would be structured.

• • Compliance Requirement - Has Borrower met all requirements of the Minimum Debt Service Coverage Ratio financial covenant as defined in the Loan Agreement?
  • Compliance Test - If Yes, Borrower has been in compliance, and if No, Borrower has not been in compliance.

Examples:

Typical structure we have seen from other lenders (but please note this is fully a business preference): Sample DSCR Covenant

Examples on how to fill out the sections for Compliance Requirement and Compliance Test:

Lender Configuration:

Return the information that is needed to enter your financial covenant.  The table below is where you can enter your covenant and its specifics. Your verbiage will be included in the loan document verbatim. GoDocs does not opine as to the form or function of the covenant as it is at Lender’s discretion. 

If you wish to request a Financial Covenant to be added to the documents, please provide the above table to Support@GoDocs.com.