Contribution Agreements: Joint Liability and Rights of Contribution Under Loan Guaranties
Partial Guaranties, Nonrecourse Carveouts, Asserting Defenses
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will analyze the contribution obligations of co-guarantors after a borrower defaults on a loan and how a contribution agreement can clarify those obligations. The panel will discuss various actions or circumstances which should be addressed, including partial guaranties, bad acts which trigger carveout guaranties, the effect of waivers and defenses, and the death or insolvency of a guarantor.
- Contribution obligations generally, absent a contribution agreement
- Factors to consider in apportioning contribution obligations
- Benefit obtained from the transaction
- Ownership percentage
- Management role
- Partial guarantees
- Carveout guaranties
- Tax considerations
- Waivers and defenses
The panel will review these and other key issues:
- Absent a written agreement, what is the common assumption as to contribution obligations when there are multiple guarantors?
- What are the factors to consider in allocating liability under a contribution agreement?
- How should the death or insolvency of a guarantor impact contribution obligations?
- How should parties account for the bad acts of one guarantor?
Ren R. Hayhurst
Ren RH Legal Consultants
Mr. Hayhurst’s professional life has focused for over 30 years on all aspects of lender and borrower... | Read More
Mr. Hayhurst’s professional life has focused for over 30 years on all aspects of lender and borrower representation, including real estate and commercial loan documentation, real estate loan workouts and foreclosure, receivership and loan/guaranty enforcement litigation.Close
Michael W. Kaufman
Mr. Kaufman has over 15 years of experience assisting clients with a range of financing matters. His practice involves... | Read More
Mr. Kaufman has over 15 years of experience assisting clients with a range of financing matters. His practice involves all aspects of secured and unsecured bank, mezzanine, and other senior and subordinated lending. Mr. Kaufman represents borrowers, banks, funds and other lenders. He guides clients through the complexities of subordination and intercreditor arrangements, the negotiation of financial covenants and the perfection of collateral.Close