Negotiating Nonrecourse Carveout Guaranties in Commercial Real Estate Loans

This Note discusses 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.

Joshua Stein, Joshua Stein PLLC, with Practical Law Real Estate


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