“In GECCMC 2005-C1 Plummer Street Office v. NRFC NNN Holdings, decided March 29, 2012, the California Court of Appeals held that a guaranty on a non-recourse loan to a borrower, which guaranteed payment in the event of a lease termination, was not triggered when the tenant abandoned the properties. The court considered two factors in rendering its decision: (1) what constitutes termination of the lease under the California Civil Code and the applicable lease provisions; and (2) the intent of the parties in triggering the guaranty obligations, as set forth in the guaranty and the other loan documents.”
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