[Kingside]

When Chase first took over WAMU, they offered me $100 to open a free business checking account. I took it.

The way I see it, I got my share of TARP funds.

[Kingside]

When Chase first took over WAMU, they offered me $100 to open a free business checking account. I took it.

The way I see it, I got my share of TARP funds.

[Kingside]

When Chase first took over WAMU, they offered me $100 to open a free business checking account. I took it.

The way I see it, I got my share of TARP funds.

[Kingside]

When Chase first took over WAMU, they offered me $100 to open a free business checking account. I took it.

The way I see it, I got my share of TARP funds.

[Kingside]

There is no California law that requires guarantees for commercial loans, but I am involved in a situation where in connection with the negoiation of a commercial work out, the lender is trying to take the position that a guarantee is required by federal regulators as part of a work out under the interagency “delay and pray” commercial workout guidance that came out last October:

http://www.ncua.gov/letters/2010/CU/10-CU-07%20attachment.pdf

That guidance gives some considerable emphasis to consideration of “The prospects for repayment support from any financially responsible guarantors” as a way for commercial lenders to modify without taking a write down on underwater assets.

[Kingside]

There is no California law that requires guarantees for commercial loans, but I am involved in a situation where in connection with the negoiation of a commercial work out, the lender is trying to take the position that a guarantee is required by federal regulators as part of a work out under the interagency “delay and pray” commercial workout guidance that came out last October:

http://www.ncua.gov/letters/2010/CU/10-CU-07%20attachment.pdf

That guidance gives some considerable emphasis to consideration of “The prospects for repayment support from any financially responsible guarantors” as a way for commercial lenders to modify without taking a write down on underwater assets.

[Kingside]

There is no California law that requires guarantees for commercial loans, but I am involved in a situation where in connection with the negoiation of a commercial work out, the lender is trying to take the position that a guarantee is required by federal regulators as part of a work out under the interagency “delay and pray” commercial workout guidance that came out last October:

http://www.ncua.gov/letters/2010/CU/10-CU-07%20attachment.pdf

That guidance gives some considerable emphasis to consideration of “The prospects for repayment support from any financially responsible guarantors” as a way for commercial lenders to modify without taking a write down on underwater assets.

[Kingside]

There is no California law that requires guarantees for commercial loans, but I am involved in a situation where in connection with the negoiation of a commercial work out, the lender is trying to take the position that a guarantee is required by federal regulators as part of a work out under the interagency “delay and pray” commercial workout guidance that came out last October:

http://www.ncua.gov/letters/2010/CU/10-CU-07%20attachment.pdf

That guidance gives some considerable emphasis to consideration of “The prospects for repayment support from any financially responsible guarantors” as a way for commercial lenders to modify without taking a write down on underwater assets.

[Kingside]

There is no California law that requires guarantees for commercial loans, but I am involved in a situation where in connection with the negoiation of a commercial work out, the lender is trying to take the position that a guarantee is required by federal regulators as part of a work out under the interagency “delay and pray” commercial workout guidance that came out last October:

http://www.ncua.gov/letters/2010/CU/10-CU-07%20attachment.pdf

That guidance gives some considerable emphasis to consideration of “The prospects for repayment support from any financially responsible guarantors” as a way for commercial lenders to modify without taking a write down on underwater assets.

[Kingside]

The reason commerical lenders prefer corps/LLCs whose only asset is the real estate, at least since 2005, is the lenders have a lot more advantages in Bankruptcy Court when single asset entities go chapter 11.

The legal departments of the commercial lenders who prepare the loan docs are well aware of CA guarantee law as it has existed for the last 60 years, and when the loan docs are presented, they almost always include personal guarantees for the principals to sign. I have seen this happen time and time again since the late eighties.

[Kingside]

The reason commerical lenders prefer corps/LLCs whose only asset is the real estate, at least since 2005, is the lenders have a lot more advantages in Bankruptcy Court when single asset entities go chapter 11.

The legal departments of the commercial lenders who prepare the loan docs are well aware of CA guarantee law as it has existed for the last 60 years, and when the loan docs are presented, they almost always include personal guarantees for the principals to sign. I have seen this happen time and time again since the late eighties.

[Kingside]

The reason commerical lenders prefer corps/LLCs whose only asset is the real estate, at least since 2005, is the lenders have a lot more advantages in Bankruptcy Court when single asset entities go chapter 11.

The legal departments of the commercial lenders who prepare the loan docs are well aware of CA guarantee law as it has existed for the last 60 years, and when the loan docs are presented, they almost always include personal guarantees for the principals to sign. I have seen this happen time and time again since the late eighties.

[Kingside]

The reason commerical lenders prefer corps/LLCs whose only asset is the real estate, at least since 2005, is the lenders have a lot more advantages in Bankruptcy Court when single asset entities go chapter 11.

The legal departments of the commercial lenders who prepare the loan docs are well aware of CA guarantee law as it has existed for the last 60 years, and when the loan docs are presented, they almost always include personal guarantees for the principals to sign. I have seen this happen time and time again since the late eighties.

[Kingside]

The reason commerical lenders prefer corps/LLCs whose only asset is the real estate, at least since 2005, is the lenders have a lot more advantages in Bankruptcy Court when single asset entities go chapter 11.

The legal departments of the commercial lenders who prepare the loan docs are well aware of CA guarantee law as it has existed for the last 60 years, and when the loan docs are presented, they almost always include personal guarantees for the principals to sign. I have seen this happen time and time again since the late eighties.

[Kingside]

[quote=SK in CV
The only time I have ever seen a claim for a deficiency after a non-judicial foreclosure on commercial property is by a junior lien holder, when the non-judicial foreclosure was by a senior lien holder. I’m unaware of any exemption to California’s one-action rule that applies to commercial property. It might exist. Can you cite that exemption?[/quote]

The one action rule (CCP 726) is not really an anti-deficency statute, it is a statute that requires a lender to proceed with foreclosure before seeking other remedies such a personal liability. The anti-deficency protection you are talking about, no deficiency claim against the borrower after a non-judicial forecloure, is CCP 580d.

But CCP 580d only applies to the borrower, not “true” third party guarantors. This issue has been litigated often in California, but if you want to see a recent application and interesting explanation in a recent California published decision, Talbott v. Hustwit (2008)164 Cal.App.4th 148 is a good one:

http://www.lawlink.com/research/CaseLevel3/85760

And to be clear, a “true guarantor” is a third party, not the borrower itself. I stand by my statement that most commercial real estate loans I see that involve LLCs/corps also involve personal guarantees.

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