Negotiating Deed of Trust Liability and Carve Out Clauses

This presentation discusses various aspects of provisions in deeds of trust that deal with recourse versus non-recourse liabilities and so-called carve-out provisions imposing liability in an otherwise non-recourse context. A sample non-recourse carve-out provision is attached as Appendix A, but there is a great variety of provisions which lenders and borrowers negotiate on a regular basis. It should be noted that the author represents borrowers and guarantors almost exclusively. Consequently, although an effort has been made to be relatively even-handed in discussing particular issues in this presentation, the remarks inevitably reflect the author’s perspective.

Negotiating Deed of Trust Liability and Carve Out Clauses

This presentation discusses various aspects of provisions in deeds of trust that deal with recourse versus non-recourse liabilities and so-called carve-out provisions imposing liability in an otherwise non- recourse context. A sample non-recourse carve-out provision is attached as Appendix A, but there is a great variety of provisions which lenders and borrowers negotiate on a regular basis.