Loan Covenants

While processing an application, loan covenants can be added to define the condition(s) that an applicant must uphold during the term of a loan. For example, maintaining a specific amount of financial liquidity throughout the course of loan servicing.

Depending on configurations made by the system administrator, loan covenants can be manually added to an application from the Loan Covenants panel, or automatically added through a rule executed by an event/action pair.

To learn more about adding loan covenants through rules, please see the Add a Loan Covenant Rule Vocabulary Template example in this guide.

The Loan Covenants panel is a system-defined panel that displays a list of the loan covenants on an application, and provides the ability to add and manage loan covenants during the application process.

Depending on the configuration of the sub-product's workflow model, the Application screen including the Loan Covenants panel may be assigned to the Workflow and/or Screens section of the Application Navigator.

This panel includes a grid with the following columns of information for each loan covenant:

Column

Description

Covenant

Displays the description of the loan covenant, which explains the condition to be upheld during the term of the loan.

If the loan covenant description includes a placeholder, and the placeholder has not been populated with a value from the application, the placeholder name appears in the description until a value can be pulled from the application. For example, ##PlaceHolder1##.

Applies To

Displays the full name of the applicant to whom the covenant applies.

Duration

Displays the time-frame the covenant is applicable for after the loan is originated.

Validation Frequency

Displays the frequency in which the loan covenant is to be validated.

Next Due Date

Displays the next date the loan covenant is to be validated.

Added By

Displays the username of the user who added the loan covenant.

Waived

An editable field that allows users to waive a loan covenant for an applicant. This field displays a to indicate that a loan covenant has been waived by the institution, and appears blank if the covenant is not waived.

If a user is not granted permission to waive loan covenants, this field is disabled, and not able to be modified in the grid.

In order for a user to waive a loan covenant in the Loan Covenants panel, the Loan Covenants – Waive on Application permission must be set to Change under the Application Processing category in the Permissions tab of System Management > Origination > Users, or System Management > Groups > Security Groups.

Comments

An editable field that allows users to enter comments for the loan covenant.

If a user is not granted permission to change loan covenants, this field is disabled, and not able to be modified in the grid.

In order for a user to modify details for a covenant in the Loan Covenants panel, the Loan Covenants – Change permission must be set to Change under the Application Processing category in the Permissions tab of System Management > Origination > Users, or System Management > Groups > Security Groups.

Date Waived

A read-only field, which displays the date that a loan covenant was waived. This field appears blank if a loan covenant is not waived, and automatically populates with the applicable date when the Waived check box is selected.

Waived By

A read-only field, which displays the name of the user who waived the loan covenant. This field appears blank if a loan covenant is not waived, and automatically populates with the applicable username when the Waived check box is selected.

The toolbar in the top of the Loan Covenants panel allows users to perform the following functions:

If a user is not granted permission to add, change, and/or delete loan covenants, the corresponding buttons are disabled in the Loan Covenants panel.

In order for a user to add, change, and and delete covenants in the Loan Covenants panel, the following permissions must be set to Change under the Application Processing category in the Permissions tab of System Management > Origination > Users, or System Management > Groups > Security Groups:

Loan Covenants - Add
Loan Covenants - Change
Loan Covenants - Allow Delete

Button	Description
	Allows a user to add loan covenant to the current application.
	Allows a user to edit an existing loan covenant assigned to an applicant on the current application.
	Allows a user to remove a loan covenant that was manually added to the current application.

Upon clicking or in the Loan Covenants panel, a window appears to capture the details for the covenant.

Loan Covenant Details

When adding or editing a loan covenant, the following window appears to define the details for the covenant:

This window allows users to complete the following information for the loan covenant being added or modified:

Field

Description

Covenant

Select the loan covenant to be added to the application. This drop-down includes a list of the loan covenants configured by the system administrator in System Management.

This is a required field. If a value is not selected, an error is received when trying to save the loan covenant.

Loan Covenants are configured within the Loan Covenants page in System Management > Origination > Loan > Loan Covenants. For more information, please see the Loan Covenants topic in the Administrator Guide.

Description Text Box

Displays a description of the loan covenant selected from the Covenant drop-down list. This text box appears blank until a covenant is selected. Once a covenant is selected, this box automatically populates with the description configured for the covenant by the system administrator, including any placeholders added to the description text.

If the system administrator configures the covenant to have a user-defined description, the text within this field can be edited. If the covenant does not support a user-defined description, text can not be added or modified within the text box.

This text box is only editable if the User Defined Description check box is enabled for the loan covenant.

If a placeholder is mapped to an Applicant level field, the placeholder in the description is automatically updated to reflect the applicant value from the application, once an applicant is selected from the Applies To drop-down list. If a value has not been selected for the Applies To field, a value for the placeholder is not yet available in the application, or the placeholder is not directly mapped, the name of the placeholder appears in the description. For example, ##PlaceHolder1##.

Once a value is assigned to the placeholder within the Edit Placeholders section, or the value of a directly mapped placeholder is set in the application, the placeholder name is updated to reflect the value of the field.

Applies To

Select a name from the drop-down list to identify the applicant to whom the loan covenant applies. This drop-down includes a list of the applicants assigned to the application.

This is a required field. If a value is not selected, an error is received when trying to save the loan covenant.

Duration

Select a value from the drop-down list to identify the time-frame that the covenant is to be applicable for after the loan is originated. This list includes all values configured for the COVENANT_DURATION lookup in System Management > Origination > Field Configurations.

Validation Frequency

Select a value from the drop-down list to identify the frequency in which the loan covenant is to be validated. This list includes all values configured for the VALIDATION_FREQUENCY lookup in System Management > Origination > Field Configurations.

Next Due Date

Enter a date, or select a date from the calendar, to identify the next date that the loan covenant is to be validated.

Added By

A read-only field, which displays the username of the user who added the loan covenant.

Waived

Select the check box to waive the loan covenant for the applicant.

The value of this field can also be modified directly within the panel grid, if the user has permission to waive loan covenants.

Date Waived

Waived By

Comment

Enter text that identifies additional information about the loan covenant.

The value of this field can also be modified directly within the panel grid, if the user has permission to change loan covenants.

The Edit Placeholders section initially appears blank, but automatically populates with the placeholders assigned to the covenant description, once a value is selected for the Covenant field.

If the selected covenant supports a user-defined description, this grid remains blank in the Details window.

The grid in this section includes a row for each placeholder added to the loan covenant description by the system administrator, and displays the following information:

Column

Description

Name

A read-only column that displays the label defined for each placeholder assigned to the loan covenant description. If a Placeholder Label is not defined for the placeholder, this column displays a blank value.

This value populates from the Placeholder Label column in the Placeholder Definition section of the loan covenant configuration window.

Value

An editable column that allows users to define the value for each placeholder. Similar to the text box in the top of the window, if a placeholder is mapped to an Applicant level field, this column automatically updates to reflect the applicant value from the application, once an applicant is selected from the Applies To drop-down list. If a value has not been selected for the Applies To field, a value for the placeholder is not yet available in the application, or the placeholder is not directly mapped, a blank value appears in this column.

If a placeholder is directly mapped, the field value from the application is automatically populated in this column, and the description, once it is set in the application.

Adding and Managing Loan Covenants

Adding Loan Covenants

To manually add a loan covenant:

Click in the Loan Covenants panel. A window appears to add details for the loan covenant.
Select the desired covenant from the Covenant drop-down list.
Once a covenant is selected, determine the applicant to whom the covenant applies by selecting a value from the Applies To drop-down.
After an applicant is identified, complete optional details for the loan covenant by selecting a Duration, selecting a Validation Frequency, and entering a Next Due Date and/or Comments.
If the covenant supports the ability to modify the description, add or edit the text within the text box in the top of the window.
If the covenant includes placeholders in the description, navigate to the Edit Placeholders section. If desired, click within the Value column in the grid to update the value of each placeholder.
Once all details for the covenant are defined, click OK to add the loan covenant to the application for the applicant.

Editing Loan Covenants

To modify an existing loan covenant:

Double-click the covenant to be modified within the grid, or select the covenant, and click .
Make the necessary modifications within the Edit window.
Once complete, click OK to retain the changes.

Waiving Loan Covenants

Loan Covenants can be waived by selecting the Waive check box in the panel grid, or within the Edit loan covenant window.

To waive a loan covenant within the panel grid:

Highlight the row in the grid for the desired covenant.
Select the Waived check box.
Click within the top of the screen to retain the changes.

To waive a loan covenant from the Edit window:

Select the covenant to be waived within the grid, and click .
Select the Waive check box in the Edit window.
Click OK to retain the changes.

Once the Waive check box is selected in the grid, or Edit window, the Date Waived and Waived By columns automatically populate with the current date, and username of the user who waived the covenant.

Deleting Loan Covenants

To delete a loan covenant:

Highlight the row in the grid for the desired covenant.
Click .
A message appears to confirm that the loan covenant should be deleted.
Click Yes to remove the covenant, or No to retain the covenant on the application.
Upon clicking Yes, the loan covenant is removed from the panel grid.