CMBS loan that turned recourse because SPE became insolvent

John Baker
Thanks, Brent, for forwarding this.

According to the Court of Appeal decision, the following sub-paragraph is common to many CMBS Separateness Covenants: The borrower shall not,

“fail to remain solvent or pay its own liabilities (including, without
limitation, salaries of its own employees) only from its own funds;”
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