Why use Guarantees?
• The value of the foreclosed property may not be sufficient to cover the debt, or…
• Foreclosure is complicated or undesireable due to property problems.
• Individual who guarantees the debt has far more assets than his/her entity.

Loan Guarantees enable us to make loans that couldn’t otherwise be made and help us collect on those loans.

Almost everyone has a guarantee form saved on their desktop, can print it out, and obtain a signature.

What’s wrong with your guarantee? You won’t find out until you make a demand for payment to the guarantor and their attorney sends you a letter…communicating their refusal to pay. Consider:

• Guarantor “Rights” Learn about them now, rather than from the attorney’s letter. For example, “Gradsky” waivers, where certain guarantor rights must be waived to make the guarantee enforceable
• “Sham Guarantees,” where the guarantor “guarantees” their own debt
• “Good Guarantee Gone Bad:”  The Mishandling of even a good guarantee can undo your diligent efforts.
• Secured vs. Unsecured Guarantees, Non-recourse “Carve-out” Guarantees, and “Springing Guarantees”
• California’s anti-deficiency and “one from of action” rules – when do they apply?
• Potential obligations of lender to disclose adverse material facts to guarantor

Making Guarantees Work: You’ll Find out…..
The problems: What can go wrong and the five clever ways guarantors get out of paying on your guaranty.
Solutions: How to structure Guarantees for payment, and seven ways to plug holes in your guarantee “bucket.”

Join us…

Thursday, October 20 at 12:00 noon for a fast-moving, information-packed hour that will help you avoid losses and provide you with ways to improve your “guarantee strategy.”

This communication is not intended to create or constitute, nor does it create or constitute, an attorney-client or any other legal relationship. No statement in this communication constitutes legal advice nor should any communication herein be construed, relied upon, or interpreted as legal advice. This communication is for general information purposes only regarding recent legal developments of interest, and is not a substitute for legal counsel on any subject matter. No reader should act or refrain from acting on the basis of any information included herein without seeking appropriate legal advice on the particular facts and circumstances affecting that reader. For more information, visit www.buchalter.com.