A Word of Caution…

Not So Bad Acts That May Trigger Recourse Liability in Bad-Boy Guaranties

Dear Clients, Colleagues, and Friends,

Non-recourse loans have become more popular and desirable as a means for commercial real estate financing in recent years. There is a definite appeal in these types of loans due to the fact they do not require personal guaranties by the key principals of borrowers and their sponsors, limiting the liability for the loan to the real property collateral securing the loan, and not the personal assets of the principal. Continue reading