Lorne McDougall presented a live CLE webinar on “Non-Recourse Carve Outs: Avoiding Common Pitfalls in Drafting and Negotiating Bad Boy Guaranties” on March 22 from 2 PM – 3:15 PM Eastern. The webinar was hosted by C4CM.
Financing commercial real estate transactions on a non-recourse basis is common practice. Most lenders mitigate the risk associated with issuing non-recourse debt by requiring guaranties against the lender’s losses or the entire debt when certain events take place.These “bad boy” events or “non-recourse carve-outs” are some of some of the most troublesome provisions at the heart of disputes between borrowers and lenders. Why? Because parties often negotiate “bad boy” guaranties without a complete understanding of how courts will interpret or enforce them. This CLE webinar offered legal counsel practical tips and best practice strategies on how to avoid common pitfalls in drafting and negotiating bad boy guaranties.
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