Loan tape validation that ties every cell to its clause — not a sample of files
Mismatches and double-pledged assets flagged before the fund funds.
See one case, screen by screen ↓Checking a seller’s or borrower’s loan tape against the documents behind it — the credit agreement and every amendment, the agent’s register and the lien filings — before a fund buys or lends. Loan Tape Validation does it for every term on every loan, and pins each cell to the clause that sets it.
How to choose AI solutions for lending →
Updated
A fund buying a loan portfolio, or lending against one, prices it off the seller’s loan tape: one row per loan with balance, benchmark, spread, floor, maturity, collateral and lien position. The tape is a summary somebody typed. The truth sits in the credit agreement and every amendment after it, in the administrative agent’s register and in the lien filings — and today a diligence team reads only a sample of them.
Middle-market loans are amended often: repricings, covenant resets, add-on acquisitions, amend-and-extends. A seller’s system that missed one carries the old margin, floor or maturity forward. And a loan already pledged to the seller’s own financing lender looks exactly like a clean loan on a tape. Those breaks get bought at the tape’s price and surface after a loss.
Estimated split for one secondary purchase tape, by hand and with the solution. Days of the diligence team’s time.
Six specialist agents pin every cell of the tape to its clause; the diligence lead signs and underwriting approves.
Halyard Creek Credit Opportunities Fund II is buying 48 senior secured loans from Redfern Capital Lending Fund I at 97.25 on $562,786,450 par. Tape v3 arrived Friday at 18:05; the investment committee sits Wednesday and closing is Friday 16 October. Here is the diligence, screen by screen, in the working solution.
Elena opens Redfern’s tape as the seller sent it: 48 rows, eight checked terms per loan, 384 cells. Each cell carries a pin to its clause; 350 are pinned, 12 differ only in format, 20 glow red and 2 glow amber. Beside the grid, the run log shows what the six agents did on Friday evening.
Field checker, 18:52: “tied 384 cells: 362 pinned to a clause, 20 contradicted, 2 resting on an amendment nobody delivered.”
She sorts by exposure. Halvorsen Fire & Life Safety, $18.41M par, sits on top — and its maturity cell is red. The tape says 15 Jun 2031. One click opens the page that decides it: the Second Amendment of 9 Apr 2025, §2.1(b), page 3, restated the Maturity Date as June 15, 2029, in return for a covenant reset.
Field checker: “The Second Amendment of 9 Apr 2025 brought the maturity forward two years in return for the covenant reset. The tape still carries the original date.”
Halvorsen’s credit file lays out the five documents read in full, in date order: the 188-page credit agreement of 15 Jun 2023, the First Amendment consenting to the Ridgeline Sprinkler acquisition, the Second Amendment, the guarantee and collateral agreement and Northbeam’s register at 30 Sep 2026. Seven of the eight terms tie; the maturity is item 16 on the schedule.
Copperline Veterinary Group’s spread shows S + 600 on the tape. The Second Amendment of 14 Feb 2025, §2.2, page 8, set the Applicable Margin at 5.25% for Term SOFR loans. Five loans on this tape were repriced by amendment and carried forward at the old margin — two of them with a lower floor as well.
“Repriced from 600 to 525 bps on 14 Feb 2025. The tape carries the margin before the repricing.”
The tape marks every loan free to transfer. The agent searched Delaware filings against Redfern and its SPV to 7 Oct 2026: Ironwood Credit Funding II’s UCC-1 (DE 2025 1487322) still covers Kingsferry Logistics and Wexley Home Health, lines 14 and 27 of Schedule B to its partial release of 12 Jan 2026. Quillstone and Northbeam record Ironwood as pledgee on both positions.
The lien and pledge checker never clears a loan with another secured party on record.
Brightcourt Learning’s spread glows amber. The agent’s notice of 14 Jul 2026 refers to a Third Amendment dated as of June 30, 2026, but the data room holds only two amendments for the loan. Umberleigh Infusion Centers has the same gap. Neither is assumed either way; both are marked not delivered.
A missing document is never assumed — the cell stays amber until the amendment arrives.
Schedule 4.1(k) to the Loan Portfolio Purchase Agreement is already drafted: Part A, 3 excluded loans; Part B, 10 price adjustments; Part C, 2 holdbacks; Part D, 7 disclosed with no price change. Each item names the loan, the term, the tape value, the document value and the clause, with the page.
“Every item is the clause, not an opinion: counsel can check each one against the page it cites.”
At 97.25 the tape implies $547,309,823. The documents support $512,928,540 — $34,381,283 less: three loans excluded under §2.1(c), four bought at the agent’s balance, five repricings priced under §2.4(b) and Saltmarsh’s last-out position at 93.00. Brightcourt and Umberleigh, $19,989,738, are held back, leaving $492,938,802 paid at closing.
Elena signs that tape v3 was checked in full: 384 terms on 48 loans, 362 pinned to their clause and 22 exceptions set out in Schedule 4.1(k), with the tape price, verified price, holdback and amount paid at closing in front of her as she signs.
“I have reviewed every exception and its document.”
The findings go to Daniel for approval. He approves the purchase at $512,928,540, cleared to sign the purchase agreement with Schedule 4.1(k). Kingsferry, Wexley and Burnham stay with Redfern; the holdback is released when Brightcourt’s and Umberleigh’s amendments arrive.
The same tape, seen by the four people who carry the deal — what their week looked like, and what it looks like now.
Six specialist agents pin every cell of the tape to its clause; the diligence lead signs and underwriting approves.
Reads the seller’s tape in whatever layout it arrives and maps its columns to the eight terms checked against documents: balance, benchmark, margin, floor, maturity, collateral, lien position and title.
Reads every credit agreement, amendment, security agreement and intercreditor paper in full, in date order, and builds each loan’s terms as amended.
Ties every cell on the tape to the clause that sets it, separates format differences from real ones, and marks cells whose deciding document was never delivered.
Searches UCC financing statements and releases against the seller and its vehicles, reads each release’s schedules, and reads the pledgee field on every agent’s register.
Applies the purchase agreement’s exclusions (§2.1(c)), price adjustments (§2.4) and holdbacks (§2.6) to every exception and computes the verified price, showing the arithmetic.
Drafts Schedule 4.1(k) — one numbered item per exception with loan, term, tape value, document value, clause and remedy, grouped by remedy — and the note to the seller.
Signs the findings; head of underwriting approves the purchase. The agents propose; a named person decides.
The diligence team can ask about any loan on the tape in plain words — or tell it what to send.
Why is Halvorsen’s maturity red?
The tape says 15 Jun 2031. The Second Amendment of 9 Apr 2025, §2.1(b), restated the Maturity Date as 15 Jun 2029 in return for a covenant reset. The seller’s system still carries the original date. It is item 16 on the schedule of exceptions.
Which loans are pledged to someone else?
Two: Kingsferry Logistics ($14,280,000) and Wexley Home Health ($9,765,400). Ironwood Credit Funding II’s UCC-1 (DE 2025 1487322) still covers them — its release of 12 Jan 2026 kept both on Schedule B. Both are excluded.
How much does the tape overstate the price?
At 97.25 the tape implies $547,309,823. The documents support $512,928,540 — $34,381,283 less: $31,147,911 for three excluded loans, $1,608,992 on balances, $1,137,330 for five repricings and $487,050 for a last-out position.
Which amendments were never delivered?
Two. Brightcourt Learning: the agent’s notice of 14 Jul 2026 cites a Third Amendment that changed the margin. Umberleigh Infusion Centers: the notice of 2 Sep 2026 cites a First Amendment of 21 Aug 2026 extending maturity. Both loans’ price is held back until they arrive.
13 screens from the working solution, on its sample data. Pick one to see it large.
What counts as a match, which documents decide, how a breach is priced and who signs are settings, not a project.
| Setting | Default | Choose from |
|---|---|---|
| Balance tolerance against the agent’s register | $1,000 | Any amount, set with − and + |
| Margin and floor | Exact | Exact · Within 5 bps |
| Format differences | Shown, never counted as breaches | On · Off |
| Spread lower than the tape | §2.4(b) · cap 3 years | §2.4(b) · cap 3 years, or §2.4(b) · cap 2 years |
| Last-out position | 93.00 | 93.00 · 92.50 · 94.00 |
| Second lien, or pledged to another lender | Excluded | Excluded · Escalate to IC |
| Amendment not delivered | Hold back | Hold back · Exclude |
| UCC search no older than, at signing | 10 days | 10 · 5 · 30 days |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample deal · “estimated” = our estimate · “typical” = published figures (V7 Labs — tape preparation takes 3–5 days). Tape cracking as normalise, validate and reconcile: Cascade Debt and Arcesium. People, funds, companies and loans named on this page are fictional — characters and sample data in the working solution.
Checking a seller’s or borrower’s loan tape against the documents behind it — the credit agreement and every amendment, the agent’s register and the lien filings — before a fund buys or lends. Loan Tape Validation does it for every term on every loan, and pins each cell to the clause that sets it.
Tape cracking normalises the tape, validates it and reconciles it, version after version. Loan Tape Validation does that mapping too, then goes on to the source documents: each value is tied to the executed clause, with section and page, and the cells that do not tie become a priced schedule of exceptions.
Every one. On the sample deal the agents read 229 documents behind 48 loans — 48 credit agreements, 83 amendments, 48 security agreements, 48 agent’s registers and 2 intercreditor papers — and checked all 384 cells on the tape.
The lien and pledge checker searches UCC financing statements and releases against the seller and its vehicles, reads each release’s schedules, and reads the pledgee field on every agent’s register. A loan with another secured party on record is excluded, never cleared.
The cell is marked not delivered, not assumed either way. By default the loan’s price is held back until the amendment arrives, and you can ask the seller for the missing documents from the data room screen.
Yes. The deals screen holds secondary purchases, back-leverage facilities and warehouse lines side by side, and owned portfolios are re-checked each month as new agent statements arrive.
Yes. The agents never edit the seller’s tape, never approve a purchase and never move money. The schedule goes to the seller’s counsel only when the diligence lead sends it; the diligence lead signs the findings and the head of underwriting approves the purchase.
The Agentic Solution Engine builds and deploys it from your requirements — your purchase and facility agreements, pricing grid and a sample tape with its data room — and it goes live once every quality gate has passed. We will walk you through it on one of your own past deals first.
First-pass screen in minutes, not half a day, every deal read.
1-min demoPrivate Credit Portfolio MonitoringStressed loans flagged a quarter or more before non-accrual.
1-min demoPrivate Credit ValuationDocumented support for every mark, ready for committee and auditor.
1-min demoWe’ll run Loan Tape Validation on a tape and data room from one of your own past deals.