Tag Archives: guarantees

Interpreting a Guaranty: Teeny Typo Turns Into a Colossal Pain

WBCMT 2007 C33 Office 9720, L.L.C. v. NNN Realty Advisors, Inc., 844 F.3d 473 (5th Cir. 2016) – A noteholder sought to enforce a guaranty of a $17.5 million loan made to various entities for the purpose of acquiring tenant-in-common … Continue reading

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Guarantors Beware: Ignore Boilerplate at Your Peril

Edwards Family P’ship v Dickson, 821 F.3d 614 (5th Cir. 2016) – Prior to bankruptcy the debtor obtained loans from two lenders totaling $16 million that were guaranteed by its CEO. After the debtor defaulted and filed bankruptcy, the lenders … Continue reading

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Dragnet Clauses: Sometimes They Don’t Work as Hoped, and Sometimes They Do

In re Presser, 504 B.R. 452 (Bankr. S.D. Ohio 2014) – A judgment lien creditor objected to a joint debtors’ chapter 11 plan of reorganization based on a dispute with a mortgagee about whether its mortgages secured guaranty obligations of … Continue reading

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California Anti-Deficiency Laws: Is Your Trust Obligor a “True” Guarantor Or Merely a Primary Obligor in Disguise?

In re Brock, 494 B.R. 534 (Bankr. D. Colo. 2013) – Individual chapter 11 debtors objected to a deficiency claim filed by a bank.  They argued that California’s anti-deficiency laws prevented the bank from making a claim against the debtors under their … Continue reading

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Special Purpose Entities: What Recourse Does A Lender Have When SPEs Are Consolidated Pre-Bankruptcy? … Maybe None

Fed. Nat’l Mortgage Ass’n v. Bruckner, 489 B.R. 93 (E.D. Wis. 2012) – The debtor (Buckner) owned 36 rental projects (containing ~ 1300 rental units) through various limited liability companies.  The LLCs transferred all of the properties to Buckner a few … Continue reading

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Non-Dischargeable Debts: Some Lies Matter More Than Others

Bandi v. Becnel (In re Bandi), 683 F.3d 671 (5th Cir. 2012) – In Bandi, the debtors made false statements regarding their ownership of particular real estate.  The Fifth Circuit upheld a finding that debts incurred in reliance on those … Continue reading

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Mortgage Loan Sales / Guarantees: Freedom of Contract And Double Counting

In re Kaid, 472 B.R. 1 (Bankr. E.D. Mich. 2012) – Can a mortgagee retain the right to collect on a guarantee after a sale of the guaranteed note and mortgage?  In Kaid, the answer was yes; but to avoid … Continue reading

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