Guaranty of Nonrecourse Carveout Obligations (New York)

The legal template "Guaranty of Nonrecourse Carveout Obligations (New York)" is a document designed to outline the terms and conditions of a guarantee made by a party (the Guarantor) to secure the obligations and liabilities of another party (the Borrower or Debtor) in a non-recourse financing arrangement. This template is specific to the state of New York, reflecting the legal provisions and requirements applicable in that jurisdiction.

In a non-recourse financing transaction, the lender typically limits their recourse to specific assets of the Borrower, typically the collateral offered as security for the loan. However, under certain circumstances, non-recourse carveout obligations may arise that could hold the Borrower liable beyond the scope of the non-recourse provisions. These carveouts generally involve the Borrower's misconduct or specific actions, such as fraud, misrepresentation, or misappropriation of funds.

The "Guaranty of Nonrecourse Carveout Obligations (New York)" template outlines the Guarantor's agreement to guarantee such non-recourse carveout obligations and assume personal liability for the obligations stated in the agreement. The Guarantor pledges to indemnify the lender in the event that the Borrower fails to fulfill the specified carveout obligations defined in the loan agreement. The template may also include provisions related to limitations on the Guarantor's liability, conditions for recourse, events of default, remedies, and various representations and warranties made by the Guarantor.

As this template is jurisdiction-specific, it incorporates New York law, including relevant statutes, regulations, and case law. It aims to provide a comprehensive framework within which both parties can define their rights and obligations in the context of non-recourse carveout obligations. However, it is important to note that this template should be customized and reviewed by legal professionals to ensure compliance with specific circumstances and any recent legal developments in New York.