In the News

Mike Kurtzon Quoted in Law360 Article on Banks Easing Their Commercial Real Estate Lending Terms

Notes that “Bad Boy” Provisions, Other Carveouts Are Still Around

May 16, 2014

Michael S. Kurtzon, Chicago-based member of Dykema’s Real Estate Practice Group who counsels institutional real estate lenders on a national basis in a variety of complex lending matters, is quoted in a Law360 article—“Facing Competition, Banks Ease Up On RE Lending Terms”—which appeared in the May 9, 2014 edition of this leading national online legal publication.

In the article, which focuses on U.S. banks relaxing credit terms for commercial real estate deals, Kurtzon observes that while it’s easier now (than several months ago) for good borrowers to obtain interest-only loans, or loans with less recourse in terms of guarantees of principal and interest, “bad boy” provisions and other carveouts are “still around” and “in heavy uses, when the situation calls for them.”

Kurtzon says, “The first thing borrowers want to negotiate is the recourse carveouts, [and] it's happening earlier in the process than it ever used to. But banks are still very firm in what goes into recourse carveouts and reluctant to change those."