Letter · Banking & Finance
US contractual covenant compliance certificate
A contractual certificate that the borrower completes against covenants extracted from the facility. It is not a statement under penalty of perjury and it does not decide a default.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- United States
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the authority it cites, for United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use when the facility calls for a periodic compliance certificate and the covenants have been extracted into a monitoring table. Do not use it as a sworn statement or as a waiver.
Used for these tasks
- Draft a waiver, amendment or covenant-compliance certificate
- Extract the covenant package into a monitoring table
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
Yellow: the lawyer checks each figure against the facility and the source numbers before the certificate is signed.
AI may
- Place each covenant the facility requires onto a row, with the clause number left blank until the lawyer inserts it.
- Leave the calculation blank for the person who has the source numbers.
- State that the certificate is a contractual statement and not a statement under penalty of perjury.
AI must not
- Do not add a jurat, an oath, or the words under penalty of perjury.
- Do not certify that no default exists unless the facility requires that statement and the lawyer has confirmed the facts.
- Do not waive a breach. A waiver is a separate document.
- Do not invent a financial ratio the facility does not contain.
The lawyer checks
- Match every row to a covenant in the signed facility.
- Decide who is authorised to sign, from the facility and the borrower's authority documents.
- Check the numbers against the financial statements for the period.
- If the certificate is signed electronically, decide whether § 7001(c) applies.
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 available after you log in. It is free. When you log 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.
More in Banking & Finance
- Deed of subordination (shareholder or related-party loans behind a senior lender)
- PPSR security interest registration: official guide with grantor-detail verification step
- Responsible lending assessment file
- US commercial loan commitment letter outline
- Financial difficulty working record
- General security deed (all present and after-acquired property)
- PPSA amendment demand to remove or amend a PPSR registration (s 178), with escalation steps
- US commercial loan closing checklist
- Conditions precedent checklist and satisfaction certificate for a facility agreement
- Financial difficulty decision note
- Payout request letter and deed of release and discharge of security (refinance or repayment)
- UCC Article 9 attachment and perfection checklist
- Guarantor independent legal advice letter and solicitor's certificate
- Small business default notice checklist
- Borrower’s waiver and amendment request letter, lender consent letter and covenant compliance certificate
- Clause and customer disclosure for AI-assisted credit decisioning (explanation and human review)
- Prompt template with guardrails: extract the covenant package into a monitoring table
All precedents for Banking & Finance · Tasks and AI use in this area