# Extract Default Triggers From Credit Agreement > Extract default triggers from a credit agreement and related amendments, cross-reference them against deal materials and compliance data, and produce a structured risk report with next steps. - Skill: `finchipaiorg/extract-default-triggers-from-credit-agreement` (Agent Skill) - Install (CLI): `npx skillmds@latest add finchipaiorg/extract-default-triggers-from-credit-agreement` - Raw SKILL.md: https://api.skillmd.com/api/skills/finchipaiorg/extract-default-triggers-from-credit-agreement/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Docs & Writing - Author: FinchipAIOrg (https://skillmd.com/u/finchipaiorg) - Updated: 2026-09-22 - Page: https://skillmd.com/skills/finchipaiorg/extract-default-triggers-from-credit-agreement --- # Skill: Default Trigger Extraction Report — Credit Agreement Risk Review ## 1. Subject-matter triage - Treat the assignment as an extraction-and-issue-spotting task, not a summary. - Identify every event of default, deemed default, acceleration trigger, mandatory prepayment trigger, consent trigger, and related notice or cure mechanic that could create client risk. - Read the base credit agreement together with amendments, joinders, side letters, compliance certificates, and deal materials as one integrated source set. - If multiple facilities, borrower groups, or amendment vintages exist, enumerate them first and analyze each separately rather than collapsing them into a single pass. - If the record is incomplete, say so and separate confirmed triggers from provisional triggers that depend on missing materials. ## 2. Failure modes the skill is correcting - Listing default triggers without tying each one to the specific operative language, amendment history, and any superseding provision. - Missing interaction effects between the credit agreement and other deal documents that expand, waive, narrow, or condition a trigger. - Treating a covenant breach as self-evidently material without checking whether the agreement uses a threshold, grace period, knowledge qualifier, or notice-and-cure structure. - Failing to distinguish automatic default events from lender-election remedies, notice-based defaults, and cross-default mechanics. - Overlooking that the same fact pattern can implicate more than one trigger category and should be reported separately. - Summarizing risk qualitatively without anchoring it to the controlling clause, threshold, timing mechanic, or downstream consequence. - Using broad labels like “high risk” without stating the specific severity scale used and why the entry sits at that level. ## 3. Legal frameworks / domain conventions that apply - Credit agreements typically define defaults across payment, covenant, representation, bankruptcy, judgment, cross-default, change-of-control, ERISA, invalidity, and collateral/guaranty failure concepts; identify the applicable category before labeling the trigger. - Amendments may override earlier text, so later-in-time language controls to the extent of conflict; compare each amendment against the base agreement and note any residual provisions that survive. - Many triggers depend on defined terms such as material adverse effect, permitted debt, permitted liens, required lenders, and control definitions; cite the operative definition before drawing the risk conclusion. - Cure periods, grace periods, basket capacity, and notice mechanics change whether a fact pattern is an immediate default or a future default risk; confirm the temporal mechanic before rating the issue. - Cross-default and cross-acceleration provisions often require debt, not just obligations generally; identify the debt scope, dollar threshold, and any excluded debt or dispute carve-out. - Financial covenant analysis depends on the measurement date, test period, addbacks, pro forma adjustments, and any holiday or step-down features; compare the covenant test to the correct reporting period. - Guaranty and collateral covenants frequently turn on materiality tests, exclusions, and perfection mechanics; verify whether any omission is an actual trigger or a remediation item. - For any proposition that depends on a defined legal standard in the source documents, cite the controlling contractual clause or defined term by section and subsection rather than stating the conclusion bare. ## 4. Analytical scaffolds 1. Build the universe: enumerate every agreement, amendment, and related deal document to be reviewed. 2. Extract the trigger set: list each default trigger by category and quote or paraphrase the operative standard at issue. 3. Normalize the mechanics: capture the threshold, cure period, notice requirement, knowledge qualifier, measurement date, and any exception or basket. 4. Cross-reference interactions: identify which other clause, schedule, or document changes, narrows, supersedes, or conditions the trigger. 5. Test the fact pattern: compare the disclosed facts and compliance data against the trigger mechanics, one trigger at a time. 6. Separate confirmed from contingent: distinguish present defaults, near-term risk, and non-issues that are expressly carved out. 7. Rank severity: assign each entry an ordinal severity level using a stated scale and one-line rationale. 8. State downstream consequences: explain the likely effect on borrowing availability, acceleration rights, mandatory prepayment, consent needs, collateral enforcement, or transaction timing. 9. Conclude with actions: tie each material issue to a concrete follow-up step and the responsible party. ## 5. Vertical / structural / temporal relationships - Track how the base agreement, each amendment, and any waiver interact over time; later documents may partially supersede earlier defaults but leave other mechanics intact. - If a trigger requires notice, default only ripens after the notice-and-cure sequence is complete; distinguish a breach from a matured event of default. - If a covenant is tested on a periodic basis, separate the measurement date from the reporting date and from the cure deadline. - If a cross-default depends on another document, identify the upstream instrument, the downstream consequence, and whether the other instrument itself contains a threshold or carve-out. - If multiple related defaults arise from one fact pattern, report each trigger separately and note whether they stack or duplicate the same consequence. ## 6. Output structure conventions - Produce a structured default-trigger extraction report in conventional issue-list form. - Define a single ordinal severity scale at the top and use it uniformly for every entry. - For each trigger, include: - Trigger category - Operative clause or defined term - Source document and amendment vintage - Relevant threshold, cure, notice, or timing mechanic - Cross-references to interacting provisions or deal materials - Risk assessment and severity - Downstream consequence - Recommended next step - Keep confirmed triggers and contingent triggers in separate subsections. - Include a short section for current compliance status only where a financial covenant or reporting metric is implicated. - End with a Recommended Actions block that names the action, the responsible role, and the timing anchor tied to the source materials. - Use precise citations to the agreement sections and related documents where available; do not cite a legal conclusion without identifying the contractual authority supporting it.