Don't Underestimate The Scope Of A Bad Boy Guaranty
November 27, 2012, 3:12 PM EST
Law360, New York (November 27, 2012, 3:12 PM EST) -- Benjamin Franklin once famously said, “Nothing is certain in life except death and taxes.” If Franklin were alive today, that quote would have to be amended slightly. In modern commercial real estate finance transactions, one thing is certain — there is no such thing as a fully nonrecourse loan.
In the bygone days of pure nonrecourse financing, if a borrower was unable or failed to perform its obligations under the mortgage loan documents, lenders would look solely to the underlying collateral for the recovery of the...