Guaranty Insurance in Real Estate Finance Transactions
Policy Requirements, Provisions and Exclusions; Loan Document Provisions; Determining Need for Backup Guaranty
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide counsel with an understanding of loan guaranty insurance and how it can be used instead of, or supplement, a personal guaranty in a commercial mortgage transaction. The panel will discuss the mechanics of placing and making claims under guaranty insurance, backstop guaranties and other documentation in conjunction with the policy, and critical deal points when negotiating coverage and exclusions.
- Problems presented by traditional guaranties: heavily negotiated, borrower credit history, enforcement
- Guaranty insurance as an alternative to a guaranty
- Requirements and characteristics of guaranty insurance
- Property underwriting
- Type of transaction: construction vs. permanent
- Loan term
- Coverage and exclusions
- Making claims under a guaranty policy--foreclosure requirement
- Adjustments to loan documents to reflect insurance: Need for backup guaranty?
The panel will review these and other key issues:
- What are some advantages of guaranty insurance over a traditional personal guaranty in a real estate finance transaction?
- What kinds of properties and loans are best suited for guaranty insurance?
- Why is the insurance company rating important and how should loan documents address a downgrade in the insurance company?
- In what circumstances might a lender still require recourse to the borrower and guarantor?
David L. Eichenblatt, CCIM
President and Founder
Mr. Eichenblatt has over 30 years in commercial real estate investment, development and management in all property type... | Read More
Mr. Eichenblatt has over 30 years in commercial real estate investment, development and management in all property type in markets across the country. He has worked for CBRE and TMW Real Estate Group (now Prudential) before starting David Eichenblatt and Company in 1991. Mr. Eichenblatt's past several years also includes insurance and technology industry experience. His education includes an OPM from Harvard University, MBA from Georgia State University and BS degrees in finance and international business and minor in economics from Florida State University. Mr. Eichenblatt holds the professional designation of CCIM in addition to several real estate and insurance licenses along with several patents approved by the USPTO.Close
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