Bad Boy Carve-Outs refer to provisions in nonrecourse loans which hold the borrower or guarantor liable for the loan under specific circumstances. These carve-outs include misappropriation of funds, environmental violations, waste, and voluntary bankruptcy.
A co-maker, also known as a cosigner, is a person who jointly signs a loan agreement with the primary borrower, taking on equal responsibility for the loan repayment.
An Obligor is an individual or entity that is legally or contractually bound to provide payment or fulfill an obligation to another party, known as the Obligee.
