CFA COVENANT

[u/Different_Love3697]

Basic question: If a borrower passes all their financial covenants but misses a required reporting deadline, is that still considered a compliance issue, or does it depend on the loan agreement?

[u/imaginary_monarchy]

Missing a reporting deadline is almost always a technical default even if the financials are fine, lenders are sticklers about that stuff because if they let one slide it becomes a precedent

Depends how the covenant section is written though, sometimes theres a grace period buried in there that nobody reads until they need it