Fund Not Liable For $100M RE Project Guarantee, Court Says

Law360, Dallas (December 7, 2012, 7:57 PM EST) -- A Texas appellate court on Thursday ruled that an investment fund that worked with lender Principal Commercial Acceptance LLC to finance the $100 million purchase and renovation of a Houston office complex wasn't obligated to pay $8.3 million in unfunded deferred equity.

PCA had agreed to lend $75 million toward the project with a partnership that included Buchanan Fund V LLP kicking in $25 million in equity, of which half was paid at closing, and the remainder to be paid gradually as costs arose during the...
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