News & Analysis as of

Borrowers Non-Recourse Loans Carve Out Provisions

Frost Brown Todd

Carveouts and Cash Flow: Additional Impacts of Cherryland Mall

Frost Brown Todd on

As discussed in our preceding post, the Michigan Court of Appeals’ decision in Wells Fargo Bank v. Cherryland Mall has had significant implications for non-recourse loans, particularly concerning solvency covenants often...more

ArentFox Schiff

Non-Recourse Carve-Outs: Borrower and Guarantor Considerations

ArentFox Schiff on

The Federal Reserve's most recent Financial Stability Report addressed what many industry watchers had been convinced of for some time: the commercial real estate sector is in a precarious state. The Federal Reserve Bank...more

Bass, Berry & Sims PLC

Nonrecourse Loan Pitfalls During the COVID-19 Pandemic

Bass, Berry & Sims PLC on

Real estate borrowers often prefer nonrecourse loans, which can eliminate or reduce the risk of having to satisfy a deficiency judgment if a project goes bad. However, most nonrecourse loans have carve-outs or exceptions to...more

Snell & Wilmer

Guarantors Remain Liable for “Carve-out” Obligations, Despite Non-recourse Loan

Snell & Wilmer on

Believe it or not, guaranty contracts mean what they say. If a guarantor agrees to reimburse a lender for misappropriated security deposits, unpaid taxes, and the cost of enforcement, then – not surprisingly – courts will...more

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