One of the new features of LMS Version 17.0 is integration between Covenant Monitor in Credit Analysis, and Documentation Tracking.  This functionality allows you to track any loan agreement covenant violations as Documentation Exception items, providing you with a way to track any efforts to correct those violations, as well as generate portfolio-wide exception reports.

Covenant Monitor allows you to compare the data of your borrower’s most recent financial statement with the parameters of any covenants on the loan agreement.  Now, within Covenant Monitor, you can “Activate” Documentation Tracking items.  A Documentation Exception will be created for each covenant violation on the most recent financial statement.  These Documentation Exceptions identify the type of financial statement (General and Middle Market, Agricultural, Form 1120 or Form 1065) as well as the type of violation (Current Ratio, Minimum Working Capital, Traditional DSCR, etc)

To learn more about the Covenant Monitor feature, you can watch our most recent Lunch & Learn session on our Lunch & Learn page (log-in required).  Lunch & Learn sessions are free training sessions conducted by our knowledgeable staff on the first and third Wednesday of each month.