2.1 Covenant Maintenance

Covenant is a promise in an indenture or any other formal debt agreement that certain activities will or will not be carried out or that certain thresholds will be met. In order to ensure the repayment of debt from the organization, banks need to set the covenant at the time of processing credit facility and continuously monitor the covenant during the entire period of agreement.

Maintenance module in OBCFPM is built-in with the following features to allow the bank users to easily define and monitor the covenant:

• Covenant Maintenance
• Monitoring Information Maintenance