Completion Guaranties in Construction Lending: Key Provisions for Lenders and Guarantors
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will examine key provisions found in a construction completion guaranty and selected points that may be subject to negotiation. The panel will discuss how the nature of the project, the track record of the borrower and other aspects of the transaction may figure into the final form of the completion guaranty.
- Purpose of completion guaranties
- Defining guarantor’s construction obligations
- Damages for failure to complete
- Factors affecting scope of guaranty
- Loan funding and other conditions to completion obligation
- Limitations on liability
- Liquidated damages
- Limitation of costs—hard costs vs. costs to carry the loan
- Termination upon foreclosure or bankruptcy sale
The panel will review these and other key issues:
- What factors should be considered in drafting a liquidated damages clause?
- Why should the guaranty obligation be limited to hard costs?
- What events should be deemed to terminate the guaranty obligation?
Thomas M. Hanahan
Mr. Hanahan's practice focuses on a wide range of practice areas including finance, real estate,general business... | Read More
Mr. Hanahan's practice focuses on a wide range of practice areas including finance, real estate,general business transactions, and corporate and commercial law. The areas of greatest concentration have been in project and commercial financing, real estate development, loan workouts and restructurings, and general business transactions. His general experience includes representation of real estate developers and investors in connection with the acquisition, development, leasing, financing and sale of real estate projects; commercial lenders in connection with construction loans, general real estate mortgage loans, and asset-based loans; and commercial lenders in connection with loan workouts, forbearance arrangements and foreclosures of distressed loans.Close
Joseph E. Lubinski
Mr. Lubinski is a member of the firm’s Real Estate, Development and Construction team. His varied transactional... | Read More
Mr. Lubinski is a member of the firm’s Real Estate, Development and Construction team. His varied transactional real estate practice runs the life cycle of commercial development, with particular focus on real estate finance matters. Mr. Lubinski has extensive experience in the acquisition, disposition and financing of commercial properties. He is a Fellow in the American College of Mortgage Attorneys and a former Chair of the Hospitality, Timesharing and Common Interest Development Group of the Real Property Trust and Estate Section of the American Bar Association, and currently serves on several standing committees for the Section.Close