Waiver Review
Independent project
A borrower asks for covenant relief. Waiver Review checks the request against the loan file and brings the evidence, calculations and recommendation into one report.
Code checks the quotations against the source and does the calculations. A separate model checks the interpretation, and a person makes the final decision.
In the sample, the borrower counted cash held in escrow as available. The agreement says it wasn’t on the test date. Excluding it increases the shortfall and changes who has to approve the request.
The original agreement
When is cash available?
“A restriction is assessed at the measurement date. An expected future release does not make escrow cash available before release.”
Evergreen credit agreement, Section 1.01
The saved review
- Borrower’s reported shortfall
- $1.3m
- Shortfall after excluding escrow
- $2.4m
Refer to Investment Committee
Above the $2.0m policy threshold. The desk’s separate approval history remains unresolved.
Proposal only. Human approval has not been granted.
A saved review of fictional documents. It doesn’t run a new analysis or approve anything.