AI prompt · Banking & Finance
Prompt template with guardrails: extract the covenant package into a monitoring table
Ready-to-use prompt for an approved AI tool that extracts financial covenants, undertakings, events of default and reporting dates from a facility agreement into a cited table, with guardrails, a verification checklist and a file note.
- Kind
- AI prompt. A prompt to give an AI tool, with the checks that go with it.
- Where it applies
- Australia
- AI use
- Green AI can do most of the drafting. A lawyer still reviews the result.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked against the cited sources on 17 October 2026.
- Version
- 1
- Source
- Written for this library
When to use it
Use after financial close to build a covenant monitoring table for a borrower or lender. Use only in a firm-approved AI tool with the executed documents and all amendments. Not for deciding whether a covenant is breached.
How AI may be used
Bounded extraction from documents supplied to an approved tool, with every row checked by a lawyer against the source clause.
AI may
- Extract covenants, definitions, testing dates, cure rights and reporting deadlines with clause references
- Quote definitions verbatim and flag where amendments change them
- Calculate dates from the agreement’s rules, showing the working
AI must not
- Must not determine whether a covenant has been or will be breached
- Must not fill gaps with assumptions about market-standard terms
- Must not be run in a tool that allows training on inputs or outside the client’s permitted use
The lawyer checks
- Every row checked against the source clause and the latest amendment
- Side letters, waivers and consents not in the document set identified and added
- Date calculations checked against the business day and period definitions
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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