When a lender seeks to foreclose under a deed of trust, often a borrower who does not have the resources or incentive to resist the foreclosure will offer the lender a deed in lieu of foreclosure. read more
A recent case has reaffirmed lenders' ability to require personal guarantees from principals of borrowing entities. In California Bank & Trust v. Lawlor, a California appellate court considered the enforceability of guaranties given in connection with two related loans. read more
Many of the loan documents we draft or seek to enforce contain an alternative dispute resolution provision requiring that borrower or guarantor disputes be tried by a judicial referee appointed by the Superior Court. read more
Creditors' Rights Client Alerts
Addressing Sale Proceeds In The Face Of Guaranty "Carve-Out" Provisions
Commercial loans to closely held business entities, such as an LLC or partnership, typically include guaranties by the entity's principal. Sometimes, the guarantor demands a "carve-out" to expressly exempt one or more of the guarantor's assets from the reach of the guaranty. read more
Creditors' Rights Client Alerts
Disgruntled Borrowers More Likely to Sue Lenders for Fraud as a Result of Recent California Supreme Court Decision
For the past seventy years, California Courts have held that a party is barred from claiming fraud based on an alleged oral misrepresentation that directly contradicted the express terms of a written agreement. read more