Letter · Banking & Finance
Borrower’s waiver and amendment request letter, lender consent letter and covenant compliance certificate
Three linked documents for a facility under stress or a change in the business: a borrower’s request for a waiver or amendment, the lender’s conditional consent letter, and a compliance certificate showing covenant calculations and confirming whether any default is continuing.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- Australia
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 18 October 2026
- Status
- Maintained. Checked on 18 October 2026 against the 2 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a borrower expects to breach, or has breached, a financial covenant or another undertaking, or wants consent to a transaction the facility restricts, and with each periodic compliance certificate. Use a formal amendment deed instead where the change is significant or security documents must be amended.
How AI may be used
AI may calculate draft covenant figures from the accounts using the facility definitions and draft the request and consent letters, but the CFO checks every number and the directors and lawyers decide what is represented and requested.
AI may
- Calculate draft covenant ratios from the management accounts using the definitions in the facility agreement, showing each step
- Draft the request letter from the CFO’s explanation of the breach and the proposed fix
- Compare the lender’s consent letter with the request and list conditions, fees and new undertakings it adds
AI must not
- Must not decide whether a default has occurred or is continuing, or certify anything in the compliance certificate
- Must not adjust figures, add-backs or definitions to improve a ratio
- Must not send the request or the certificate to the lender
The lawyer checks
- Every figure in the certificate is reconciled to the accounts and computed under the facility’s definitions, and the signatories are those the facility requires
- The default statement is accurate; a false certificate can itself be an event of default and expose the signatories
- The request does not admit more than is needed, reserves the borrower’s position, and is consistent with continuous disclosure obligations if the borrower is listed
- The directors have considered solvency and the s 588G duty before incurring new debt under a waived or amended facility
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.
More in Banking & Finance
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- General security deed (all present and after-acquired property)
- PPSA amendment demand to remove or amend a PPSR registration (s 178), with escalation steps
- Conditions precedent checklist and satisfaction certificate for a facility agreement
- Payout request letter and deed of release and discharge of security (refinance or repayment)
- Guarantor independent legal advice letter and solicitor's 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