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- Title
ENFORCEABILITY OF CARVEOUTS TO NONRECOURSE LOANS: AN EVOLUTION.
- Authors
Murray, John C.; Scott, Randall L.
- Abstract
Parties negotiating and drafting nonrecourse carveout language in commercial mortgage loan documents must carefully consider the consequences of creating ambiguities in the carveout language. Often, such ambiguities can only be resolved by a court of law. This Article examines the evolution of such carveouts, which have expanded dramatically in recent years to include many more acts and events. This Article also examines the efficacy of challenges to such language based on arguments such as impermissible penalty, equitable considerations, inconsistent or unclear language, and negation of the nonrecourse feature of the loan based on full personal liability for the balance of the debt. Throughout, the authors emphasize the need for accurate and conscientious expression of the parties' intention; forms are included in the appendices which might aid practitioners in accomplishing that end.
- Subjects
UNITED States; MORTGAGE loan laws; LEGAL documents; NONRECOURSE debt; PERSONAL liability; DECLARATION of intention
- Publication
Real Property, Trust & Estate Law Journal, 2013, Vol 48, Issue 2, p217
- ISSN
2159-4538
- Publication type
Article