Completion Guaranties in Construction Lending: Key Provisions for Lenders and Guarantors
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine key provisions found in a construction completion guaranty and selected points that are subject to negotiation.
Outline
- Purpose of completion guaranties
- Defining guarantor's construction obligations
- Damages for failure to complete
- Factors impacting the scope of guaranty
- Loan funding and other conditions to completion obligation
- Limitations on liability
- Liquidated damages
- Limitation of costs: hard costs vs. costs to carry the loan
- Termination upon foreclosure or bankruptcy sale
Benefits
The panel will review these and other key issues:
- The extent of the guarantor's exposure to fund construction costs
- The guarantor's ability to access unfunded construction loan proceeds and reserves held by the lender
- The construction lender's remedies, including liquidated damages provisions
Faculty
Brian P. Boland
Partner
Moritt Hock & Hamroff
Mr. Boland concentrates his practice in all aspects of complex commercial real estate and asset-based lending. He... | Read More
Mr. Boland concentrates his practice in all aspects of complex commercial real estate and asset-based lending. He represents institutional and private lenders of all sizes in connection with commercial mortgage loans, construction loans, revolving credit lines, syndicated loans, mezzanine and equity financing and U.S. Small Business Administration loans. Mr. Boland advises lenders on a variety of small business and middle market loans, from review of credit approval, to structuring, drafting and negotiating commitment and loan documents, through closing and funding. His practice also includes drafting and negotiating documents for purchase and refinance of commercial owner-occupied and investment properties throughout New York City and Long Island.
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Thomas M. Hanahan
Partner
Frost Brown Todd
Mr. Hanahan’s primary practice areas involve commercial real estate development and project finance. A... | Read More
Mr. Hanahan’s primary practice areas involve commercial real estate development and project finance. A significant portion of his practice involves representing developers and investors in the acquisition, development and disposition of commercial real estate projects and representing lenders on construction and permanent loans. His real estate development practice includes involvement in all aspects of ownership and capital structures, including joint ventures relationships, private placement equity raises, preferred equity and mezzanine financing structures, and conventional and program financing. His lending practice includes representing lenders with construction and permanent financings, including single bank deals, syndications and participations.
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