Entity Covenants

Updated August 04, 2025 14:06

Covenants in Fairways Debt are agreements specifying actions and thresholds that the borrower must perform and respect. Covenants protect lenders when borrowers do not meet their requirements.

Log in to your Fairways Debt account and select a customer account, if relevant.
Navigate to Applications > Debt & Derivatives > Entities.
Click the relevant entity name.

In this example, we log in to the Main City account.

Click Covenants.

The entity covenants display.

Note: Only covenants related to ongoing transactions in the actual portfolio are displayed. The table shows simple covenants that are associated with a single transaction/metric pair, as well as composed covenants that are associated with several transactions and metrics.

#	Description
A	Filter the covenants by status. A covenant is in "Compliant" status when the current value meets the expected threshold value. A covenant is in "Warning" status when the current value meets the threshold value defined to raise a warning. A covenant is in "Not Compliant" status when the current value does not meet the expected threshold value. A covenant is in "No Data / No Threshold" status when there is no data for the covenant or the threshold's start date has not been reached. In the latter case, data will be displayed from the next full period. Note: If the message "Multiple Currencies on Entity" is displayed and the currency type selected for the entity is "Transaction Currency", check that the same currency is applied to all transactions in this entity. For more information, see Configure an Entity Scenario. Contact your Finance Active consultant for further assistance.
B	Search for a covenant by: Transaction name Metric name
C	Sort covenants. Click an item: Once, to sort by ascending alphabetical or numerical order. An arrow directing to the top ↑ displays beside the sorted item. Twice, to sort by descending alphabetical or numerical order. An arrow directing to the bottom ↓ displays beside the sorted item. Three times, to cancel sorting. No arrow displays. To sort using multiple criteria: Click the first criteria. Push and hold this key on your keyboard: ctrl for Windows cmd for Mac Click the second criteria while holding the key from the previous step till you have configured all the criteria. In this example, the data is sorted by the next publication date in ascending order, then by the covenant status by alphabetical order. Note: The counter starts with 2 because the 1st criterion is automatically defined as the transaction group.
D	Add, edit, delete, export and/or bulk create covenants. Note: Bulk creation of composed covenants is not available.
E	Click a covenant name to open the covenant profile. If present, hover over the information icon beside the covenant name to display the associated verbiage. If present, hover over the formula icon to display the metric formula. Note that the reference of the related transaction is specified in brackets (e.g. Interest Paid over Period (reference date) [0062]) for the metric defined at transaction level only. From the covenant profile, you can: edit the covenant or generate a document for this one. For further information, see Generate a Covenant Document. view the change history for this covenant by clicking on the clock icon . Contact your Finance Active consultant to enable the Covenants module history beta feature.
F	Click the clock icon to view the change history on a dedicated panel. Contact your Finance Active consultant to enable the Covenants module history beta feature.

Covenants can also be accessed by clicking on their name in the Covenants tab on the related transaction profile.