Overview

This page helps you understand how to add a covenant to a commercial paper. As part of adding, you need to specify the required covenant template, accountable person, third party along with mentioning the target schedule and map to ratio.


The below step-by-step instructions describe the process.

Adding a Covenant to a Commercial Paper


1. On the Side Panel of the Finvisage application, click Liabilities, and then click  Commercial Paper from the drop-down menu.



The Commercial Paper page is displayed.


2. On the  Commercial Paper page, click the External ID of the commercial paper, which you wish to edit.


The Commercial Paper tab is displayed.


3. On the  Commercial Paper tab:


A. Click the Covenants tab.


B. Next, on the Covenants tab, click the Add Covenant button. 


The Covenant screen is displayed.


C. On the Covenant screen, enter the covenant information.


Note: 

1. Refer to the below table for the field description.

2. Fields marked with asterisk are mandatory.



FieldDescription
General Information
Covenant TemplateFrom this drop-down box, select the required covenant template. 
Accountable PersonIn this field, enter the accountable person name.
Note: The accountable person refers to the name of the person who is handling the covenant for the company.
Third PartyIn this field, enter the third person name.
Note: The Third Party refers to  the name of the third party who is responsible for managing the covenant.
Set Target Schedule
Target DateThe current date is displayed as the target date by default. If required, you can change it.

Note: Specifying the target date enables the system to compare the target covenant ratio with the actual covenants on the target date.
OffsetIn this field, enter the offset value.

Note: The offset indicates the number of days prior to which the alerts have to be sent.
End dateIn this field, enter the loan disbursement end date.
Map to Ratio
Mapping ConditionsFrom this drop-down box, select either Automatic or Manual depending on the requirement.

Note:

- If the Automatic option is selected, then the covenant will be added automatically to the loan facility at the target date of every month.

- If the Manual option is selected, then you need to add the covenant ratio to the loan facility manually at the target date every month.

EntityFrom this dropdown box, select the required entity.
Ratio NameFrom this dropdown box, select the ratio name.
Threshold PercentIn this field, enter the threshold percent.
Note: Specifying the threshold percent enables the system to send out alerts prior to the covenant violation when the covenant is about to be broken.
Additional Information
In this box, enter the additional information, if any.



4. Click the Save button.


The covenant is added to the commercial paper.