News & Analysis as of

Guarantors Lenders Loans

Hogan Lovells

English Supreme Court holds that the Etridge protocol applies to hybrid loan transactions

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Lenders in the retail market will be familiar with the Etridge protocol, which (in summary) requires them to ensure that the guarantor of a loan must first obtain independent legal advice, in order to minimise the risk that...more

Walkers

Privy Council clarifies secured party’s duty when realising security

Walkers on

The Privy Council has clarified that the duty of care to "obtain the best price reasonably obtainable" in the sale of secured collateral does not require a secured party to improve an asset before sale to obtain the best...more

Farrell Fritz, P.C.

When Additional Obligations Don’t Derail CPLR 3213: Commercial Division Clarifies the Test

Farrell Fritz, P.C. on

Commercial loan documents are notoriously complex, packed with financial reporting requirements, compliance covenants, and collateral maintenance obligations.  For practitioners seeking the expedited relief of CPLR 3213’s...more

Cadwalader, Wickersham & Taft LLP

Family (Office) Affairs May 2025 - Family Office NAV Facilities

As Net Asset Value (“NAV”) credit facilities continue to grow in popularity, we have seen a steady increase in non-traditional borrowers utilizing NAV loans, including family office borrowers. The term “family office” is used...more

Katten Muchin Rosenman LLP

Recognition Agreements in Preferred Equity

When making a preferred equity investment behind senior mortgage debt, both the senior lender and the preferred investor will have a number of concerns. Under what circumstances may the preferred investor exercise remedies?...more

Miles & Stockbridge P.C.

What You Need to Know About Freddie Mac’s Recent Update

Freddie Mac published last Thursday an update to the Freddie Mac Guide, which included a discussion of various underwriting, fraud detection and loan document changes. Here's what you need to know...more

Bricker Graydon LLP

Lenders Beware - Ohio Appellate Decision Impacts Guaranties

Bricker Graydon LLP on

A recent opinion from the First Appellate District of Ohio is noteworthy for lenders for two reasons: (1) what language not to insert in a guaranty; (2) what information potentially needs to be relayed to a potential...more

Hogan Lovells

Got a French Obligor on a cross-border deal? You need to know about this change

Hogan Lovells on

From 1 January 2022, a new French law will impose annual notification requirements on lenders benefiting from a limited recourse security interest from a French guarantor. Failure to comply may result in French law limited...more

Sullivan & Worcester

Meeting the Challenges Covid-19 Poses for Trade Finance Transactions: Key Issues to Consider When Making Amendments and Waivers

Sullivan & Worcester on

This article is the second in a series looking at how to address some of the issues affecting trade finance documentation and transactions in the current climate. The first article in this series analysed some of the...more

Moritt Hock & Hamroff LLP

A Guaranty for Every Need: An Overview of the Variety of Loan Guaranties-and How to Select the Right One

Underwriting a commercial credit facility is a process of weighing various risk mitigators until the lender is satisfied that the potential for loss is within its tolerance. By evaluating collateral value, credit history,...more

Davis Wright Tremaine LLP

Avoiding a Pitfall for Family Business Loan Guarantors: Contribution Among Multiple Guarantors

When a family business borrows money, the lender often requires some or all of the business owners to guarantee the loan. If one of the business owner guarantors pays on the guaranty, that guarantor is entitled to...more

Patton Sullivan Brodehl LLP

Loan Guaranties: Statutory and Legal Defenses Can Be Waived, But What About Equitable Defenses?

Guarantors of loans occupy a vulnerable position under California law. While direct borrowers often benefit from California’s robust statutory anti-deficiency framework, those protections are often unavailable for...more

Snell & Wilmer

Guarantors’ “Lost Profits” Completely Offset Lender’s Deficiency Claim

Snell & Wilmer on

Believe it or not, lenders can breach loan agreements too…and when they do, there can be significant consequences. In Great Western Bank v. LJC Dev., LLC, 726 Ariz. Adv. Rep. 21 (Ariz. Ct. App. Nov. 10, 2015), the Court of...more

Spilman Thomas & Battle, PLLC

Guarantors Can Use Anti-Deficiency Statute in North Carolina

The North Carolina Supreme Court recently handed down the final word in a dispute over whether guarantors get the benefit of the state’s anti-deficiency statute after the lender bids on and buys the real property at a...more

Baker Donelson

"I Knew You Were Trouble": Recent Trends in Lender Liability Litigation

Baker Donelson on

Lender liability claims generally arise in one of following contexts: (i) claims seeking recovery of damage or "leverage" to accept discounted payoffs; (ii) counterclaims to foreclosure/receivership/guarantor actions; or...more

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