News & Analysis as of

Guarantors

Holland & Knight LLP

Litigating Commercial Lease Terminations, Part 1 of 2: Landlord's Perspective

Holland & Knight LLP on

Commercial leases are a critical source of income and financial stability for property owners, but the current evolving economic environment presents many risks. One of the primary concerns is when a tenant falls behind on...more

Hinckley Allen

The Legal Implications of a Continuing Lease Guaranty

Hinckley Allen on

A guaranty secures the faithful and timely performance of a tenant’s obligations under a lease and ensures that the landlord can legally pursue the guarantor in the event of a tenant’s default. A lease guaranty can come in a...more

Dunlap Bennett & Ludwig PLLC

How A Commercial Loan Officer Can Save Their Borrowers Recordation Tax On Maryland Loans Under $12.5 Million.

In Maryland the use of Indemnity Deeds of Trust are a simple path to save your borrowers $5 to $7 per thousand on their closing costs for commercial loans, but proper structuring of the transaction is essential to meet the...more

Womble Bond Dickinson

Essential Strategies for Managing Maturing CRE Loans in Today's Market

Womble Bond Dickinson on

The commercial real estate industry is facing an impending tsunami of $2 trillion in debt maturities, with an estimated $929 billion coming due this year. If you will be caught in this net because the loan secured by your CRE...more

Snell & Wilmer

The Danger of a Missing Signature: A Look at Guarantor Spousal Consents in the Southwest

Snell & Wilmer on

This article examines the importance of spousal consents in Arizona and New Mexico. Under Arizona law, lenders cannot enforce a guaranty against community property if the guarantor’s spouse did not consent to it. New Mexico...more

Lathrop GPM

Illinois Federal Court Denies Cross Motions for Summary Judgment on Breach of Contract and Guaranty Claims Due to Ambiguity in the...

Lathrop GPM on

A federal court in Illinois recently denied cross motions for partial summary judgment as to franchisor 360 Painting, LLC’s claims for breach of contract by painting franchisee R. Sterling Enterprises, Inc. (RSE), and breach...more

Holland & Knight LLP

Making Lemonade from Lemons: A Mortgage Lender's Guide to Successful Loan Workouts, Part 2

Holland & Knight LLP on

If you are a mortgage lender who followed the recommendations in the first article in this series, then you should have a solid grasp of your mortgage portfolio. You have identified the relevant players and their respective...more

Bricker Graydon LLP

Lenders Beware - Ohio Appellate Decision Impacts Guaranties

Bricker Graydon LLP on

A recent opinion from the First Appellate District of Ohio is noteworthy for lenders for two reasons: (1) what language not to insert in a guaranty; (2) what information potentially needs to be relayed to a potential...more

Patton Sullivan Brodehl LLP

Guarantor Liability: Assignment of Note Doesn’t Automatically Assign Guaranty Too

Obligations reduced to a promissory note are often accompanied by a written guaranty. The law treats the guaranty as an independent obligation. A case recently decided by California’s First District Court of Appeal —...more

Morrison & Foerster LLP

Hotel Mortgage Holder Barred from Converting Mortgage Loan In Part to Mezzanine Loan

Morrison & Foerster LLP on

In a case litigated in the New York Supreme Court, the Court recently ruled that a private equity firm that acquired a mortgage loan made on the Maxwell Hotel in New York does not have the authority necessary to convert...more

Nutter McClennen & Fish LLP

FAQs for Commercial Landlords When a Tenant Files Chapter 11

When a tenant under an unexpired lease of nonresidential real property files a case under chapter 11 of the Bankruptcy Code, both tenant and landlord acquire rights and obligations that may contravene the terms of the lease...more

Mandelbaum Barrett PC

Three Major Differences Between Recourse and Non-Recourse Loans

Mandelbaum Barrett PC on

Borrower / Guarantor Liability Recourse – The borrower (or guarantor) is personally liable for the full amount of the loan, including any debt remaining after the collateral is foreclosed upon and sold. To satisfy the...more

Rosenberg Martin Greenberg LLP

What Are the Rights of a Guarantor Who Buys a Loan Against Co-guarantors?

The scenario is fairly common. A bank makes a loan to a business. The owners of the business guarantee the loan. The business defaults. The owners blame each other for the failure of the business. When the bank demands...more

King & Spalding

Second Circuit Finds No Waiver of Usury Defense in Breach of Loan Agreement Case

King & Spalding on

On September 6, 2023, the U.S. Court of Appeals for the Second Circuit vacated and remanded a district court’s decision rejecting borrower defendants’ usury defense on grounds of waiver and collateral estoppel. The lender,...more

Holland & Knight LLP

Types of Guarantees in Commercial Leases

Holland & Knight LLP on

Many commercial landlords require that a guarantor secure the obligations and liabilities of a tenant as a prerequisite for entering into a lease. A lease guaranty is a contract between an individual or entity (guarantor)...more

ArentFox Schiff

Non-Recourse Carve-Outs: Borrower and Guarantor Considerations

ArentFox Schiff on

The Federal Reserve's most recent Financial Stability Report addressed what many industry watchers had been convinced of for some time: the commercial real estate sector is in a precarious state. The Federal Reserve Bank...more

Morrison & Foerster LLP

Regulators Replace Policy Statement on Troubled CRE Loans and Allow Short-Term Accommodations

The Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, National Credit Union Administration, and Federal Deposit Insurance Corporation (collectively, the “Agencies”) issued a joint...more

Holland & Knight LLP

NYC's Guaranty Law Violated the Contracts Clause of the U.S. Constitution

Holland & Knight LLP on

Last summer, we wrote about New York City Administrative Code Section 22-1005, known as the Guaranty Law. This was a pandemic-era prohibition on enforcement of personal guaranties supporting commercial leases for defaults...more

Dechert LLP

Federal Regulators Adopt a New Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts

Dechert LLP on

The OCC, FDIC, NCUA and Fed have adopted a new Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts. The new policy statement updates, expands on and supersedes existing guidance from 2009,...more

Latham & Watkins LLP

Release Me From My Bands Or Else My Project Fails Third Party Releases in Schemes

Latham & Watkins LLP on

Third-Party Releases are common in English law schemes of arrangement and restructuring plans, and US courts have so far indulged that approach in granting recognition. If Prospero’s plea to the audience at the...more

Hogan Lovells

Hong Kong court rules keepwell deeds are enforceable in first of its kind decision

Hogan Lovells on

In the latest development regarding the validity and enforceability of keepwell deeds in the "Peking Founder” litigation, a Hong Kong court has awarded more than US$164 million by way of damages to one of the plaintiffs who...more

Rivkin Radler LLP

Courts Leave Landlords in the Lurch on Guaranty Law

Rivkin Radler LLP on

Recently, two important court decisions ruled that a New York City local law known as the Guaranty Law, which rendered unenforceable certain guaranties of commercial lease obligations, was unconstitutional. One month later,...more

Miles & Stockbridge P.C.

Md. Bill Would Raise the Limit on the Amount of Debt an IDOT Can Secure, Defer Recordation Tax

A bill approved by the Maryland General Assembly would raise the maximum threshold amount of money that an indemnity deed of trust (IDOT) may secure on a loan and still benefit from recordation tax exemptions. House Bill...more

Cole Schotz

Personal Guarantors Back on the Hook as New York City’s “Guaranty Law” is Ruled Unconstitutional

Cole Schotz on

The saga continues now that a federal district court judge has ruled that N.Y.C. Local L. No. 55 of 2020 (also known as the Guaranty Law) is unconstitutional. The Guaranty Law, which sought to provide immediate monetary...more

A&O Shearman

When is a guarantee not a guarantee? When it's an indemnity!

A&O Shearman on

In Holman Fenwick Willan LLP v Samady (2023) the High Court had to decide whether the words (contained in a payment plan agreed between a client and his law firm) "you agree and confirm that you are personally liable for and...more

186 Results
 / 
View per page
Page: of 8

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide