Workflow Templates: Loan Covenant Compliance checklist

Verify the debt service coverage ratio meets the required threshold.

Check the current ratio to ensure it is within the agreed limits.

Confirm that the leverage ratio is compliant with the covenant terms.

Ensure timely submission of quarterly financial statements.

Confirm annual audited financial statements are provided by the deadline.

Review compliance certificates for accuracy and completeness.

Check that capital expenditure does not exceed the agreed limits.

Verify that no additional debt has been incurred without prior approval.

Ensure that asset disposals are compliant with covenant restrictions.

Review any notices of default from the lender.

Check for any breaches in loan covenants that could trigger default.

Ensure all corrective actions have been taken to address potential defaults.

Loan Covenant Compliance checklist