Liquidated Damages

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Laws and interpretations of those laws change frequently and the subject matter below has important legal consequences. If not understood, legal, tax, or other counsel should be consulted. All risk of loss or damage is solely that of the user of the form below.
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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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