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