Solution

Covenant
Intelligence

Extract, validate, and monitor covenant obligations across the credit lifecycle.

Key capabilities

Covenant extraction from loan documentation
Threshold validation against current financial performance
Calculation verification using deterministic engine
Exception identification and severity classification
Aging analysis for reporting compliance
Source evidence for every covenant finding

What reviewers get

Covenants mapped to their source clause

Thresholds validated against actual performance

Breaches classified by severity

Reporting timelines tracked and aged

Operating principle

AI proposes. Deterministic services calculate. Source documents prove. Humans decide.

How it works

A grounded pipeline that keeps calculation, policy, and human judgment clearly separated.

1

Ingest source documents

Credit memos, financial statements, and supporting files are parsed into structured data with full source provenance preserved.

2

Calculate deterministically

A deterministic calculation engine computes figures and comparisons outside the language model, so numbers are reproducible and auditable.

3

Reason with grounded AI

AI proposes findings only from extracted evidence and the applicable, effective-dated policy — never from unverifiable assumptions.

4

Route to the reviewer

Every finding arrives with its source citation and severity so a human reviewer can confirm, adjust, or dismiss it — and decide.

An illustrative finding

Illustrative

A fictional example showing how a single issue flows from source data to a reviewer decision. Figures are illustrative only.

Scenario

A loan agreement requires the borrower to maintain a minimum current ratio of 1.25x, tested quarterly.

Extracted data

Covenant clause §5.3.2: minimum current ratio 1.25x. Latest quarter financials attached and tagged.

Deterministic check

Calculation engine computes the current ratio at 1.15x from the reported quarter.

Applicable policy

Applicable loan agreement §5.3.2 governs the covenant threshold and test frequency.

AI finding

AI proposes a covenant breach: 1.15x is below the required 1.25x minimum.

Reviewer action

Reviewer verifies against the cited clause and financials, then routes for waiver or remediation.