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Rethinking the Bankruptcy Springing Recourse Guaranty
March 31, 2011
Real estate partner Meredith Kane published an article on the efficacy and enforceability of the bankruptcy springing recourse guaranty in commercial real estate lending. The article discusses recent court decisions upholding the guaranties, and proposes incorporating new "standard" exceptions exculpating guarantors in complex multi-lender financings where a bankruptcy filing may be an unavoidable or desirable process for resolving disputes among lenders which can impede an orderly workout or foreclosure of a defaulted loan. The article "Rethinking the Bankruptcy Springing Recourse Guaranty" appeared in the March 30 New York Law Journal.
To read the article, click here.