Non-Recourse Carve-Outs

Referred to colloquially as “Bad Boy Carve-outs”, a list of actions or guarantees that may result in the borrower or guarantor taking on partial or full recourse liability for the loan. These actions initially were limited in scope to “bad acts” such as theft or voluntary bankruptcy by the borrower, however over time the list of non-recourse carve-outs has grown to include acts which one may not consider wrongful (failing to permit property inspections or not paying real estate taxes).