How nonrecourse loan carveouts jeopardize personal liability
Abstract: With the many types of loans available to borrowers, nonrecourse loans remain popular with borrowers because they can shield them from personal liability. But lenders will try to add “carveouts” to minimize that protection. If borrowers violate carveouts in the loan document, they may be left with full liability. This article highlights why both lenders and borrowers will negotiate nonrecourse loan carveouts, with borrowers looking to minimize personal liability.