How are covenants tracked in the nCino system?

Covenants in the nCino system are tracked by type, frequency, and next evaluation date. This approach allows financial institutions to monitor compliance with the specific conditions outlined in loan agreements effectively. By categorizing covenants based on their type—such as financial reporting requirements or operational restrictions—organizations can ensure they are aware of the exact nature of their obligations.

Additionally, tracking covenants by frequency helps in scheduling evaluations, ensuring timely reviews to assess compliance against the established covenants. The next evaluation date component is crucial for maintaining an up-to-date understanding of when each covenant should be reviewed, thus aiding in proactive management of loan agreements and minimizing the risk of defaults or breaches.

This systematic tracking method helps in ensuring that all relevant aspects of the covenants are monitored, facilitating better decision-making and risk management in the loan process.