Butzel Long Client Alert - Court finds recourse liability against a guarantor due to borrower insolvency

1.27.2012

January 27, 2011

In this issue:

Court finds recourse liability against a guarantor due to borrower insolvency

Michigan Court of Appeals Opinion

On December 27, 2011, the Michigan Court of Appeals published Wells Fargo Bank, NA v. Cherryland Mall Limited Partnership et al., 2011 WL 6785393 (Mich. App. Dec. 27, 2011), which for the first time holds that a non-recourse mortgage loan backed by commercial mortgage backed securities ("CMBS") will give rights of recourse against the borrower and the loan guarantor when the borrower violates a solvency covenant.

To view the complete publication, click the link under Related Files

Related Materials

What's Trending

Follow us on social media

Jump to Page

By using this site, you agree to our updated Privacy Policy and our Terms of Use.