Negotiating Nonrecourse Carveout Guaranties in Commercial Real Estate Loans | Practical Law

Negotiating Nonrecourse Carveout Guaranties in Commercial Real Estate Loans | Practical Law

A Practice Note discussing nonrecourse carveout guaranties, often referred to as bad boy guaranties. These guaranties are common in nonrecourse loans secured primarily by commercial real estate. This Note provides guidance on negotiating carveout guaranties, with drafting techniques to help limit excessive risks that may be faced by carveout guarantors.

Negotiating Nonrecourse Carveout Guaranties in Commercial Real Estate Loans

Practical Law Practice Note 2-521-0515 (Approx. 17 pages)

Negotiating Nonrecourse Carveout Guaranties in Commercial Real Estate Loans

by Joshua Stein, Joshua Stein PLLC, with Practical Law Real Estate
MaintainedUSA (National/Federal)
A Practice Note discussing nonrecourse carveout guaranties, often referred to as bad boy guaranties. These guaranties are common in nonrecourse loans secured primarily by commercial real estate. This Note provides guidance on negotiating carveout guaranties, with drafting techniques to help limit excessive risks that may be faced by carveout guarantors.