True or False: To extend a covenant compliance record's due date without changing the recurring due date of the parent covenant, FIs must first configure the extension of covenants.

The statement is true. In nCino’s configuration for commercial banking, extending the due date of a covenant compliance record while maintaining the recurring due date of the parent covenant requires specific configuration. This is necessary to ensure that the extension process does not alter the underlying schedule of the covenant itself.

Covenants are often tied to specific terms and conditions that need to be monitored regularly, and the system is designed to handle these extensions in a way that maintains the integrity of the original covenant governance. Therefore, financial institutions must indeed configure the extension settings appropriately before performing an action to extend a due date without impacting the parent covenant. This setup is crucial for accurate tracking and compliance management within the bank's operational processes.

Adjustments like these highlight the importance of understanding the relationships and dependencies within the software, ensuring that compliance records are handled correctly without compromising the original terms agreed upon with clients.