Learning outcome
You will be able to structure a maker-checker review that proves the system record agrees to approved and executed terms.
Foundation
Key concepts
Source hierarchy
Credit approval confirms authorized risk terms while executed documents establish contractual terms and operating rules.
Facility structure
Deal, facility, tranche, borrower, guarantor, lender and agent relationships determine limits and downstream processing.
Economic terms
Currency, commitment, pricing, floors, fees, schedules and repayment rules drive cash and accruals.
Control attributes
Notices, authorizations, accounting mappings, restrictions and exception ownership make the record operationally safe.
In practice
Operating workflow
- 01
Collect approved sources
Use final executed documents, approval evidence, closing checklist and authorized standing data.
- 02
Map the hierarchy
Establish parties, facilities, tranches, lender positions, currencies and limits in the correct relationships.
- 03
Record economic terms
Enter effective and maturity dates, pricing, day count, floors, fees, schedules and payment rules.
- 04
Configure operational controls
Apply notice periods, transaction restrictions, accounting, settlement instructions and required approvals.
- 05
Perform independent validation
A checker compares critical fields to source evidence, resolves differences and retains the review trail.
Risk and quality
Control checklist
- Total tranche commitments agree to the approved facility amount
- Dates, pricing and fee rules match executed documents
- Party roles and settlement details receive independent review
- Every approved exception has an owner and evidence
Worked context
Example: two-tranche facility
A facility contains a USD 15 million revolver and a USD 10 million term loan. The setup separates limits, maturity, pricing and repayment rules while preserving the common borrower, guarantor and agreement relationships.
Knowledge check
Test your understanding
Why is a field-by-field comparison more reliable than a general reasonableness review?Show answerHide answer
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