Commercial Loan Guarantees Under Heightened Scrutiny
Strategies for Lenders and Guarantors in Drafting, Negotiating and Enforcing Guaranty Agreements
Recording of a 90-minute premium CLE webinar with Q&A
This seminar will analyze key components of commercial loan guaranties and defenses to the enforceability of these agreements. The panel will outline best practice for both lenders and guarantors in structuring, drafting and negotiating guaranty agreements in connection with loan workouts and new loan transactions.
- Scope of guaranty agreements
- Guaranty of payment v. collection
- Full or limited payment/duration guaranty
- Reducing guaranty
- Carve out “bad boy” guaranty
- “Springing” guaranty
- Completion guaranty
- Intercorporate guaranty (“upstream, downstream, cross-stream”)
- Drafting guaranty agreements; key provisions
- Invalidity as to primary obligor
- Waiver of suretyship and defenses
- Notice of default
- Notice and cure opportunity
- Right to revoke/continuing guaranty
- Environmental indemnity
- Guarantor covenants
- Liability for multiple obligations
- Enforcement Issues
- Interpretation of guaranty
- Consideration for guaranty — timing of guaranty
- Acceptance by lender
- Material increase in risk
- Lender breached first
- Impairment of collateral
- Right to jury trial
- Loan modification/workout considerations
- Foreclosure considerations
- Bankruptcy considerations
The panel will review these and other key questions:
- In what situations will lack of consideration be a viable defense to enforceability?
- What is the distinction between a guaranty of payment and a guaranty of collection, and why does this matter?
- What lender liability risks are inherent in its dealings with a guarantor?
- How do springing guaranties in commercial mortgage loans affect the distressed borrower's options?
Charles (C. J.) Schoenwetter
Bowman and Brooke
He concentrates his civil litigation practice in the areas of general commercial, construction and product liability... | Read More
He concentrates his civil litigation practice in the areas of general commercial, construction and product liability litigation, with a special focus relating to UCC, products liability, tort, and breach of contract/warranty claims. C.J.'s experience also extends to the area of alternative dispute resolution, including arbitration.Close
He specializes in real property transactions, business transactions, and clean technology. His expertise includes... | Read More
He specializes in real property transactions, business transactions, and clean technology. His expertise includes advising borrowers, lenders, and guarantors on loan documentation, workout and loan enforcement issues across loans totaling billions of dollars. He also advises clients on general business, corporate and transactional matters, from entity formation to complex contractual negotiations.Close
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Strafford will process CLE credit for one person on each recording. All formats include program handouts.
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