Haynes Boone Partner Brett Dockwell spoke with Law360 as an increase in claims by lenders seeking to recoup commercial real estate losses from loan guarantors is informing negotiations in new deals.
Read an excerpt below.
In order to pursue a guarantor rather than the collateral property, lenders must surmount the recourse carveout, which protects guarantors from liability except in certain circumstances.
"Certain lenders, and I would say often special servicers, can be very aggressive in enforcing guarantees and making claims of a triggering event for a recourse carveout. I've definitely seen some creativity there," said Dockwell.
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