Non-Recourse Carve Outs, Bad-Boy Guaranties, and Personal Liability: Latest Developments

Avoiding or Resolving Lender and Guarantor Disputes in and Outside of Bankruptcy

Recording of a 90-minute CLE webinar with Q&A

Conducted on Thursday, August 10, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will offer real estate and finance counsel an examination of some of the more troublesome provisions at the heart of disputes between borrowers and lenders. The panel will review commonly used carve outs contained in non-recourse provisions, analyze operative provisions in bad-boy guaranties, and discuss recent court cases, including Cherryland and its progeny. The panel will outline strategies for avoiding and resolving disputes involving these provisions.


Despite many commercial loans being characterized as “non-recourse”, most lenders require that a guarantor with sufficient net worth stand behind certain of the borrower’s obligations under the loan. Such guarantors often believe that they are guarantying only against affirmative bad acts by the borrower, but lender recourse obligations often go beyond just “bad boy” carveouts.

Counsel to borrowers and lenders must anticipate the serious pitfalls in using carve outs in so-called non-recourse loans and must understand the operative provisions of the “springing recourse” and bad-boy guaranties.

Listen as our authoritative panel of real estate and bankruptcy attorneys explains recent legal developments in the use and enforcement of commercial real estate loan guaranties, carve outs in non-recourse provisions, and Cherryland and other recent case law. The panel will also discuss strategies for resolving disputes involving these provisions.



  1. “Springing recourse” and bad-boy guaranties:
    1. Single-purpose entity/separateness: requirements and violations; Cherryland
    2. Substantive consolidation in bankruptcy
    3. Other
  2. Non-recourse carveouts
    1. Carve outs from A to Z
    2. Environmental indemnities
    3. Recent case law concerning non-recourse loans
    4. Sample provisions
  3. Bankruptcy perspective


The panel will review these and other key issues:

  • What are the types of non-recourse carve outs? How should counsel approach them?
  • What are the legal and practical ramifications for the guarantor of a defaulted loan under a carve-out guaranty?
  • What are the key strategies for resolving disputes involving these provisions?
  • How have these provisions been treated in bankruptcy? What are some strategies for resolving disputes in bankruptcy?


Lee, Kyung
Kyung S. Lee

Diamond McCarthy

Mr. Lee practices in the area of debt restructuring and corporate reorganizations. He has served as debtor's...  |  Read More

Lubinski, Joseph
Joseph E. Lubinski

Husch Blackwell

Mr. Lubinski is a member of the firm’s Real Estate, Development and Construction team. His varied transactional...  |  Read More

William S. Small
William S. Small

Enenstein Ribakoff LaViƱa & Pham

Mr. Small is a nationally recognized real estate lawyer with over 38 years of experience successfully handling a broad...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video