title = "Financial Covenants and Compliance Monitoring"

content = """
Financial covenants are legally binding promises in a loan agreement that require
the borrower to maintain certain financial ratios. These serve as 'early warning
systems' for the bank, allowing for intervention before a default occurs.

**Common Financial Covenants:**
1. **Minimum DSCR:** Ensures the borrower maintains sufficient cash flow to cover
   debt payments (e.g., Minimum 1.25x).
2. **Maximum Leverage Ratio:** Limits total debt relative to EBITDA or Net Worth
   (e.g., Total Debt / EBITDA not to exceed 3.5x).
3. **Minimum Liquidity:** Requires the borrower to maintain a certain amount of
   unencumbered cash or availability on their line of credit.

**Compliance Certificates:**
Borrowers are typically required to submit a 'Compliance Certificate' quarterly or
annually. This document, signed by the CFO, provides the calculations for each
covenant based on the most recent financial statements.

**Consequences of a Breach:**
A covenant breach is a 'Technical Default.' While it doesn't always lead to loan
acceleration, it gives the bank the right to renegotiate terms, increase interest
rates, or require additional collateral.
"""

version = "0.0.1"
