This topic provides systematic instructions on specifying covenant details.

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   The Covenant Maintenance screen is displayed.

   Figure 3-37 Covenant Maintenance

   
   

   
   Description of "Figure 3-37 Covenant Maintenance"

   
   

   Click
   
   icon. The Covenant Details screen displays.

   Figure 3-38 Covenant Details

   
   

   
   Description of "Figure 3-38 Covenant Details"

   
   

   Figure 3-39 Covenant Details

   
   

   
   Description of "Figure 3-39 Covenant Details"

   
   

   Figure 3-40 Monitoring Information Details

   
   

   
   Description of "Figure 3-40 Monitoring Information Details"

   
   

   Figure 3-41 Formula Details

   
   

   
   Description of "Figure 3-41 Formula Details"

   
   

   For more information on fields, refer to the field description table.

   Table 3-34 Covenant details - Field Description

   Field	Description
   Covenant Code	Select the covenant code from the LOV. Active covenants maintained under covenant master maintenance of covenants domain are available for linking.
   Covenant Name	Covenant name of the selected covenant code gets defaulted from covenant master maintenance and is not editable.
   Description	The covenant description can be modified across the schedules .
   Classification Type	The available options are: Internal External Note: Covenant classification type is defaulted from the Covenant Maintenance on selecting the covenant. The same is modifiable at entity level.
   Covenant Type	Displays the covenant type based on the selected covenant Code from the Covenant Maintenance screen on selecting covenant. User cannot modify this.
   Covenant Sub Type	Displays the covenant sub-type based on the selected covenant name from the Covenant Maintenance screen. This is applicable for non-financial types .User cannot modify this.
   Revision Frequency	Selectthe frequency from the drop-down list. The available options are: Weekly Fortnightly Monthly Quarterly Half Yearly Yearly Custom Frequency of the specified covenant is defaulted based on the details maintained at Covenant Maintenance screen or Collateral Category screen. Defaulted frequency can be modified by user during linkage. Note: Frequencycan be modified after save and authorization of the Collateral covenant record. You can modify the Frequencyfrom a lower one (say – weekly) frequency to a higher one (say – Monthly) or vice-versa. You are allowed to change a covenant's frequency during the covenant period - either before the notice date for the current instance or after the tracking task generation for the current instance. All existing restrictions for Frequencywill continue to be there during the modification.
   Notice Days	Notice days is number of days prior to revision date of the covenant gets defaulted from Covenant Maintenance or Collateral Category screen. Notice days are mandatory when frequency is custom, fortnightly, weekly, monthly and above. Covenant is available for tracking during the notice days prior to revision date. Note: Notice Days must be less than the Custom Days in case Custom Days is selected as Frequency. In case the Custom Days value is 1, the system does not allow to capture Notice days. Notice Days can be a maximum of 30 days even if the Custom Days is more than 30 days. If Fortnightly is selected as Frequency, the notice days must be less than 14 days. Notice Days can be modified after save and authorization of the collateral covenant record. Notice Days can either be increased or reduced, and it will update the Notice Date in turn. You are allowed to change a covenant's Notice Days during the covenant period - either before the notice date or after the tracking task generation of the current instance. Notice date modification before task generation will be applicable for current instance duly considering the date on which it is done. Modification after task generation will be applicable for next instance. All existing restrictions for Notice Days will continue to be there during the modification
   Start Date	Signify start date which indicates the effective date of covenant for the particular collateral. Note: Start Date cannot be back date Start Date can be current date or future date Start date cannot be modified after saving and authorising the current dated collateral covenant record This is applicable for current dated as well as future dated covenants.
   End Date	Specify the end date of covenant. After this end date, covenant tracking or notification generation is not applicable. End date can be modified post authorisation. System performs certain validations during end date modification considering the frequency, review date, notice/grace days. For more information on covenant end date, refer, Table3-36.
   First Review Date	The system derives the first review date considering start date + frequency. Note: The Frequency modification post authorization will also updatethe next Review date of the current or future covenant tracking instance. Subsequent Review date gets updated based on the first Review Date + Frequency specified. Examples for the Review date calculation of different frequencies and combinations. For more information on review date, refer Table 3-37.
   Grace Days	Displays the grace days maintained in the Covenant Maintenancescreen gets defaulted here based on the Covenant Name code selected. Note: Grace Days must be less than the Custom Days in case Custom Days is selected as Frequency. In case the Custom Days value is 1, the system does not allow to capture Grace days. Grace Days can be a maximum of 30 days even if the Custom Days is more than 30 days. If Fortnightly is selected as Frequency, the grace days must be less than 14 days. Grace Days can be modified after save and authorization of the collateral covenant record. The Grace Days can be increased or decreased, and it will update the tracking end date in turn. You are allowed to change a covenant's Grace days during the covenant period – either before the review date or after the review date. Change of grace days before the review date - the new Grace Days will be applicable from the current covenant tracking instance. Change of Grace Days after the review date - the new Grace Days will be applicable from the next covenant tracking instance.
   Revision Frequency	Select the frequency from the drop-down list. The available options are: Weekly Fortnightly Monthly Quarterly Half Yearly Yearly Custom Frequency of the specified covenant is defaulted based on the details maintained at Covenant Maintenance screen or Collateral Categoryscreen . Defaulted frequency can be modified by user during linkage. Note: Frequency can be modified after save and authorization of the Facility covenant record. You can modify the Frequency from a lower one (say – weekly) frequency to a higher one (say – Monthly) or vice-versa. You are allowed to change a covenant's frequency during the covenant period - either before the notice date for the current instance or after the tracking task generation for the current instance. All existing restrictions for Frequency will continue to be there during the modification.
   Monitoring Information	This field gets defaulted from Covenant Maintenance or collateral category on selecting the covenant.
   Formula	This field gets defaulted from Covenant Maintenance on selecting the covenant code. This is applicable for financial covenant.
   Currency	TheCurrency gets defaulted from Covenant Maintenanceon selecting the covenant. User can modify by the currency by clicking the search icon and select the currencyfrom the list.

   Figure 3-42 General - Schedule Details

   
   

   
   Description of "Figure 3-42 General - Schedule Details"

   
   

   For more information on fields, refer to the field description table.

   Table 3-35 Schedule Details

   Fields	Description
   Schedule Details	After entering the details in covenant details section schedule button gets enabled. User to opt schedule generation which will show blown up schedule for each frequency with details of schedule date, target type, target condition, target value. Covenant for specific schedule date/s can be waived by opting waive schedule toggle switch. Once schedule is generated, option is provided to revise the target value and also waive range of schedules.
   Schedule Date	The First revision date is the first schedule date and subsequent schedule dates generated based on the frequency.
   Target Type	The Target value (Ratio/Percent/Value) is defaulted from the linkage details and it is non-modifiable.
   Target Condition	The target condition is defaulted from the linkage details and it can be modified across the schedules.
   Target Value	The target values can be modified across schedules and the tracking will be based on respective target value for a financial covenant.
   Description	The covenant description can be modified across the schedules and the tracking will be based on the respective covenant description for a non-financial covenant.
   Revise Target	The switch is be checked to revise the schedule generated.
   Start Date	The start date is the revised target value/description start date.
   End Date	The End date is the revised target value/description end date.
   Revision Target Value	The target value modified either individually or for a date range of schedules is displayed in revised target value fields on Apply button click.
   Revised Description	The description modified either individually or for a date range of schedules is displayed in revised covenant description fields on Apply button click.
   Is Waived	The waived schedules either individually or for a date range of schedules is displayed in Waive schedule fields on Apply button click.

   Figure 3-43 Others Details

   
   

   
   Description of "Figure 3-43 Others Details"

   
   

   For more information on fields, refer to the field description table.

   Table 3-36 Other Details

   Field	Description
   Others	The details of this section are not enterable. These details get updated based on tracking of the last tracked instance.
   Compliance Status	The compliance status of the last tracked instance displayed on this field. Select the status fro m the drop-down list. The available options are: Met Breached
   Covenant Status	The status of the covenant displayed on this field.
   Last Check Value	The target value of the last tracked instance displayed on this field.
   Remarks	The Remarks if any specified for the covenant at the Collateral Category screen are defaulted. User can modify remarks based on requirement.

   Figure 3-44 Linkage Details

   
   

   
   Description of "Figure 3-44 Linkage Details"

   
   

   For more information on fields, refer to the field description table.

   Table 3-37 Linkage Details

   Fields	Description
   Reference Number	The reference number is used to link a Covenant to a particular child collateral. Once the child collaterals are added, values entered in unique field considered for each of the collateral type are populated under reference number field. User can select the reference number of any child collateral to link it to the Covenant. In case you need to link covenant at main collateral level, select ALL as the Reference number.
   Customer Number	Select the customer number.

   Table 3-38 Covenant End Date

   Business date	Start date	Frequency	Review date	Notice days	Notice date	End date existing	Modified end date	Modification	Remarks
   13TH OCT	10TH OCT	MONT HLY	10TH NOV	5	5TH NOV	10TH JAN	10TH	ALLOWE D	-
   13TH OCT	10TH OCT	MONT HLY	10TH NOV	5	5TH NOV	10TH JAN	1ST DEC	ALLOWE D	Last covenant will fall due on 10th November
   13TH OCT	10TH OCT	MONT HLY	10TH NOV	5	5TH NOV	10TH JAN	10TH NOV	ALLOWE D	-
   13TH OCT	15TH SEP	MONT HLY	15TH OCT	3	12TH OCT	15TH JAN	15TH OCT	ALLOWE D	-
   13TH OCT	15TH SEP	MONT HLY	15TH OCT	3	12TH OCT	15TH JAN	14TH OCT	NOT ALLOWE D	Modified end date cannot be less than next Review date, if tracking task is triggered
   13TH OCT	15TH SEP	MONT HLY	15TH OCT	1	14TH OCT	15TH JAN	14TH OCT	ALLOWE D	Modification is allowed since tracking task is not yet triggered. Covenant tracking is stopped
   13TH OCT	15TH SEP	MONT HLY	15TH OCT	1	14TH OCT	15TH JAN	13TH OCT	ALLOWE D	Since covenant tracking task is yet to be generated, end date can be modified as current business date
   13TH OCT	15TH SEP	MONT HLY	15TH OCT	2	13TH OCT	15TH JAN	14TH OCT	NOT ALLOWE D	Since tracking task is triggered, end date modification is not allowed
   13TH OCT	15TH SEP	MONT HLY	15TH OCT	2	13TH OCT	15TH JAN	12TH OCT	NOT ALLOWE D	Since modified end date is backdated, modification is not allowed
   13TH OCT	15TH MAR	MONT HLY	15TH OCT	2	13TH OCT	15TH SEP	15TH JAN	NOT ALLOWE D	Since end date has already passed, no modification is allowed

   Examples for the Review date calculation of different frequencies and combinations

   Table 3-39 Review Date calculation of different frequencies and combinations

   Start date - 04-Apr-2017
   First Review Date
   Frequency	Without Start Month + Due Date
   -	-
   Daily	05-Apr-17
   Weekly	11-Apr-17
   Fortnightly	18-Apr-17
   Monthly	04-May-17
   Quarterly	04-Jul-17
   Half Yearly	04-Oct-17
   Yearly	04-Apr-18
   Custom (5)	09-Apr-17

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