Header graphic for print
Lenders 360

Tag Archives: Liability

Even More Bad Boy Liability Events: My List of Liability for Lender’s Losses or Damages

Posted in Good Times for Lenders, Guaranty Issues, Remedies

In addition to the events that create “full recourse” liability (for the entire loan), bad boy liability also includes losses or damages incurred by the Lender based upon another list of “bad” events or triggers.  I’m sure that Jim Wallenstein will cover this at his presentation during the University of Texas Mortgage Lending Institute. Like… Continue Reading

The List of “Bad Boy” Recourse Liability Events Keeps Growing: My “Roll Up” Version

Posted in Good Times for Lenders, Guaranty Issues, Remedies

Several months ago, I mused that, due to the conservative trending of commercial real estate lending, the list of “bad boy” exceptions (to a “no personal liability” deal) could be viewed as a full recourse deal.  In other words, the exceptions to “no liability” could be so expansive or long, the practical reality equates to… Continue Reading

List & Links to “HOTTEST” Topics on L360 Point To: new lending, bad loans & iPad tips

Posted in Articles, Good Times for Lenders, Technology (including Green Buildings), Tough Times for Lenders

My latest resolution is to be better at giving lists of the “hottest” or top topics on L360 – as selected by you. It gives me a rough sense of the direction we’re heading. The summer 2012 list now has several topics on “positive” lending issues, which reflects the general up-tick that I’m seeing in… Continue Reading

As “Bad-Boy” Recourse Liability Spreads to Construction Lenders . . . Is the End Near for Non-Recourse Liability??

Posted in Good Times for Lenders, Guaranty Issues, Market Trends

Once upon a time and in a very simple time,  construction lenders required full payment and performance guarantees, and only permanent lenders offered non-recourse financing (with “bad-boy” liability).  Now, even some construction lenders include a variation of non-recourse liability (with “bad-boy” events) in their structure.  And, the list of “triggers” or events that form the… Continue Reading

Bad-Boy Liability: Courts Find Liability for Violating Solvency or Net Profit Retention Covenants

Posted in Guaranty Issues, Tough Times for Lenders

We’re in that part of the cycle where many of us are focusing on guaranty agreements, which run the full spectrum from full payment and performance guaranties to “bad boy” indemnification agreements (my recent comment). One issue being litigated is the bad boy or recourse event tied to a breach of these types of covenants… Continue Reading

Say What? Tips On Oral Communication – When It Becomes Personal

Posted in Tough Times for Lenders, Training

In several earlier postings (part I and part II), I listed several tips on oral communication with the borrower, loan guarantor or principals. One tip covered included maintaining a level-headed "attitude" during the workout or foreclosure process.  A professional attitude is tough to keep when conversations go beyond hard-nosed negotiations, and start to attack you… Continue Reading