Completion Guaranties in Construction Lending: Key Provisions for Lenders and Guarantors
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine key provisions found in a construction completion guaranty and selected points that are subject to negotiation.
Outline
- Purpose of completion guaranties
- Defining guarantor's construction obligations
- Damages for failure to complete
- Factors impacting the 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
Benefits
The panel will review these and other key issues:
- The extent of the guarantor's exposure to fund construction costs
- The guarantor's ability to access unfunded construction loan proceeds and reserves held by the lender
- The construction lender's remedies, including liquidated damages provisions
Faculty

Brian P. Boland
Partner
Moritt Hock & Hamroff
Mr. Boland concentrates his practice in all aspects of complex commercial real estate and asset-based lending. He... | Read More
Mr. Boland concentrates his practice in all aspects of complex commercial real estate and asset-based lending. He represents institutional and private lenders of all sizes in connection with commercial mortgage loans, construction loans, revolving credit lines, syndicated loans, mezzanine and equity financing and U.S. Small Business Administration loans. Mr. Boland advises lenders on a variety of small business and middle market loans, from review of credit approval, to structuring, drafting and negotiating commitment and loan documents, through closing and funding. His practice also includes drafting and negotiating documents for purchase and refinance of commercial owner-occupied and investment properties throughout New York City and Long Island.
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Thomas M. Hanahan
Partner
Frost Brown Todd
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.
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