CASE Releases New White Paper on Non‑Recourse Loan Risks

NEW YORK–(BUSINESS WIRE)–Case Equity Partners (CASE), a commercial real estate investment and advisory firm specializing in distressed and structured‑finance situations, today announced the release of a new white paper, “Negotiating Non‑Recourse Terms with Your Lender.” The paper examines how non‑recourse commercial real estate loans frequently expose borrowers to unintended personal liability due to overly broad or poorly negotiated carve‑outs.

To download the full report, please visit: https://www.caseinv.com/media/negotiating-non-recourse-terms.

Authored by Shlomo Chopp, Managing Partner of CASE, the white paper draws on more than two decades of real‑world commercial real estate experience, much of which involved advising borrowers, lenders and bondholders through distressed commercial real estate transactions. It outlines common drafting pitfalls in non‑recourse carve‑outs – often referred to as “bad‑boy” provisions – and offers a practical framework for negotiating protections before leverage is lost at the term‑sheet stage.

“Non‑recourse carve‑outs have become far more technical over the past 15 years, and even sophisticated borrowers are getting caught by language that turns normal operating decisions into personal liability,” said Chopp. “We’ve seen deals where nobody intended that outcome – borrowers, lenders or counsel – but once a loan moves into servicing, the documents are enforced to the letter. This paper is about keeping non‑recourse loans genuinely non‑recourse, except for a tightly defined list of real misconduct.”

The white paper’s release comes as commercial real estate owners face elevated refinancing pressure and growing distress across property types. Lenders, on the flip side of the coin, are seeking more paths to recovery as a result of collateral impairment. The paper highlights common documentation traps involving carve‑out scope, springing full‑recourse provisions, taxes and insurance, waste, litigation rights and bankruptcy‑related triggers, and emphasizes the importance of distinguishing normal business risk from true misconduct.

About Case Equity Partners

CASE is a commercial real estate distressed advisory and investment firm. It delivers debt restructuring and risk‑mitigation solutions for sophisticated investors, including foreign institutions, sovereign wealth funds, family offices, syndicates, and private owners. Drawing on deep experience across banks, institutional and private lenders, investment funds, and CMBS special servicers, CASE combines property‑level insight with capital‑stack expertise to navigate complex negotiations and resolve distress. The firm advocates for borrowers facing challenges they cannot address alone, helping capable operators manage unfamiliar loan dynamics with clarity and control. For more information, visit www.caseinv.com.

Contacts

Media Contacts

Jason Chudoba
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Matthew Chudoba
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