Guaranty of Nonrecourse Carveout Obligations (Lender-friendly) (Illinois)

This legal template likely pertains to a guaranty agreement in the context of a nonrecourse carveout obligation, specifically tailored to be favorable to the lender or financial institution. It is specific to Illinois state law.

Nonrecourse carveout obligations typically refer to specific circumstances under which a borrower or guarantor becomes personally liable for certain obligations or liabilities that would otherwise be nonrecourse or limited to the collateral securing a loan. In other words, it outlines scenarios or events that may trigger the borrower's or guarantor's liability beyond what is generally agreed upon in a nonrecourse loan agreement.

This template is designed to protect the interests of the lender in such nonrecourse carveout scenarios. It likely outlines the terms and conditions under which the guarantor agrees to assume personal liability for certain carveout obligations, primarily focusing on ensuring that the lender can recover their dues even if the loan defaults or specific events occur.

Considering it is labeled as "lender-friendly," it suggests that the template may heavily favor the lender by emphasizing strict conditions for triggering the guarantor's liability. It might also provide clear provisions regarding the lender's rights and remedies in case of a default in the nonrecourse carveout obligations.

As this template is specifically suited to Illinois state laws, it would likely incorporate legal provisions and language specific to the jurisdiction to ensure compliance with local regulations and court precedents.