Debt Covenant Policy

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Understanding the Intricacies of Debt Covenant Procedures

This policy sample sets forth appropriate guidelines for monitoring and complying with debt covenants related to financing activities.

According to this policy, whenever equity financing or short- or long-term debt is required to fund company operations, or whenever there are transactions, which would contingently obligate the company, corporate treasury must be contacted to arrange and/or approve all terms, conditions and financial covenants. The legal department must approve the legal form on all instruments, documents or agreements related to financing, indebtedness and contingent obligations. This standard applies to the mobile phone distribution process for all company employees.

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