Skip to main content

LO-002

Scenario

This case tests the system's ability to correctly process an amendment notice rather than a primary credit agreement. The Delta Facilities Amendment Notice modifies three key fields — margin, maturity date, and one covenant threshold — in an existing term loan. The challenge is that the document does not re-state unchanged fields; a model that extracts all fields from this document will fabricate values for fields that are intentionally absent. The system must: (1) identify that this is an amendment document, (2) extract only the amended fields, (3) capture original and new values for each amended field, (4) extract the effective date of the amendment, and (5) flag unchanged fields as "unchanged — refer to original agreement."

Input

Document: delta-amendment-notice.pdf

Task: Extract all loan onboarding fields from this document. Flag whether each field is being amended by this notice or is unchanged. For amended fields, provide: original value, new value, and the effective date of the amendment.

Expected Output

Document classification: Amendment Notice — not a primary credit agreement. Original agreement: Delta Industries Ltd. Term Loan Facility Agreement dated 12 March 2023.

FieldStatusOriginal ValueNew ValueEffective Date
BorrowerUnchanged
GuarantorsUnchanged
Facility AgentUnchanged
Facility AmountUnchanged
CurrencyUnchanged
Facility TypeUnchanged
TenorUnchanged
Maturity DateAmended2026-06-302027-06-302026-04-01
Margin / SpreadAmended175 basis points per annum215 basis points per annum2026-04-01
Reference RateUnchanged
Commitment FeeUnchanged
Repayment ScheduleUnchanged
Governing LawUnchanged
Conditions PrecedentAmended[See original agreement]Delivery of updated audited financial statements for FY2025 within 30 days of this amendment2026-04-01 — one-time CP for this amendment
MAC clauseUnchanged
Negative PledgeUnchanged

Effective date of all amendments: 1 April 2026

Ground Truth Citation

Document Classification

"THIS AMENDMENT NOTICE is dated 20 March 2026 and is made between (1) DELTA INDUSTRIES LIMITED (the 'Borrower') and (2) MERIDIAN BANK (HONG KONG) LIMITED (the 'Facility Agent'). This Notice amends the Term Loan Facility Agreement dated 12 March 2023 (the 'Facility Agreement') as set out herein."

Source: delta-amendment-notice.pdf, Page 1, Recitals

Margin Amendment

"With effect from the Effective Date, Clause 9.1 (Rate of interest) of the Facility Agreement is amended by replacing the reference to '1.75% per annum' with '2.15% per annum'."

Source: delta-amendment-notice.pdf, Page 2, Clause 3.1(a) (Amendments to the Facility Agreement)

Maturity Date Amendment

"With effect from the Effective Date, the definition of 'Final Maturity Date' in Clause 1.1 of the Facility Agreement is amended by replacing '30 June 2026' with '30 June 2027'."

Source: delta-amendment-notice.pdf, Page 2, Clause 3.1(b) (Amendments to the Facility Agreement)

Conditions Precedent (Amendment-Specific)

"The effectiveness of this Amendment Notice is conditional upon the Facility Agent receiving, in form and substance satisfactory to it, delivery of the audited financial statements of the Borrower for the financial year ended 31 December 2025 within 30 days of the date of this Notice."

Source: delta-amendment-notice.pdf, Page 3, Clause 4.1 (Conditions Precedent to Amendment)

Effective Date

"'Effective Date' means 1 April 2026, provided that all conditions precedent set out in Clause 4 have been satisfied or waived by the Facility Agent."

Source: delta-amendment-notice.pdf, Page 1, Clause 1.1 (Definitions)

Scoring Criteria

ConditionScore
Document correctly classified as amendment; all 3 amended fields extracted with original + new values + effective date; unchanged fields correctly flagged as unchanged1.0
Document correctly classified as amendment; amended fields extracted but effective date not captured or incorrect0.75
Amended fields extracted correctly but unchanged fields are re-stated with fabricated values (not "unchanged")0.25
Document treated as a primary agreement and all 16 fields extracted (fabricating values for absent fields)0.0
Any value fabricated for a field not present in the amendment document0.0 (case-level, hallucination)

Known Failure Modes

  • Treating the amendment notice as a primary agreement and fabricating values for unchanged fields (e.g., inventing a Borrower name or Facility Amount that doesn't appear in this document).
  • Extracting the amendment's one-time CP as a permanent CP of the underlying facility.
  • Missing the conditional nature of the Effective Date (i.e., stating "effective 1 April 2026" without noting it is conditional on CP satisfaction).
  • Extracting the new margin (2.15%) without preserving the original margin (1.75%) that appears in the amendment clause.
  • Not classifying this as an amendment notice at all — treating the document as an ordinary facility agreement.

Regression Note

N/A — initial case