Guarantors Remain Liable for “Carve-out” Obligations, Despite Non-recourse Loan
By: Ben Reeves Introduction Believe it or not, guaranty contracts mean what they say. If a guarantor agrees to reimburse a lender for misappropriated security deposits, unpaid taxes, and the cost of enforcement, then – not surprisingly – courts will hold the guarantors liable for these expenses. In Investors Warranty of America, Inc. v. Arrowhead […]
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3 min read
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Tagged: bad-boy guaranty, carve-out, investors warranty v. arrowhead, non-recourse, real estate litigation
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Ben Reeves
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