Covenants for Committee/Board

Who’s it for and what’s it about?

Your housing association/co-operative is likely to have some loan agreements in place; some housing association/co-operatives will depend on these more than others. The terms of these loan agreements including financial covenants are incredibly important and can place restrictions on your business and have serious ramifications if they are breached in any way. The delay in investment makes breaching some covenants likely and housing association/co-operatives have to navigate a careful path through this.

This short session will help Committee/Board members to better understand what their covenants do, the importance of maintaining them and how to deal with breaches and potential breaches, both from a strategic and regulatory point of view.

Course content

  • What’s is a Loan document?
  • How do these differ between lenders?
  • What are the main terms/ conditions within the loan agreements?
  • Examples of restrictive covenants
  • What are the financial covenants and how do they operate?
  • Asset cover
  • Gearing
  • Interest cover
  • What are the standard information requirements and how do you know if your housing association/co-operative complies?
  • The implications of breaching a loan agreement

Learning Outcomes

On completion of this session, delegates will:

  • Have a better understanding of their housing association/co-operative’s loan obligations
  • Increase awareness of financial covenants and how they are calculated
  • Obtain a greater understanding of the implications of a breach of lending conditions
  • Be able to scrutinize in more detail any future plans for additional lending

Date: 18th May 2021

Time: 5:30pm – 7:30pm

Trainer: Paul McNeill

Costs: Members £110.00/Non-Members £210.00

To book a place please visit our website by clicking here