Financial covenants are requirements in a credit agreement that a borrower maintain certain financial metrics, such as a maximum leverage ratio, minimum interest coverage ratio or minimum debt service coverage ratio. They are tested at set intervals, often quarterly. Borrowers who fail to meet their financial covenant obligations may be in default on their loan, which may result in an Event of Default if not cured within a set period of time or otherwise waived by the lenders. Lenders use financial covenants in credit agreements to help manage down-side risk should the borrower under-perform expectations. LoanStreet CLS tracks financial covenant tests and deadlines for commercial and corporate loans with built-in covenant tracking software.