The "Devil's Dictionary"
is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary
and used in today's bankruptcy arena.
A term sometimes used to describe a type of guaranty similar to the Springing Guaranty but where the liability does not “spring” into life upon the occurrence of the condition (e.g. bankruptcy) but is present and alive from the outset but is extinguished if the condition occurs (e.g. recordation of a deed in lieu of foreclosure or completion of a foreclosure) or does not occur (e.g. no bankruptcy is filed, no preference action is brought) in the future.
See also Co-Obligor, Co-Debtor, Guarantor, Guaranty, Nonrecourse, Recourse, Special (or Single) Purpose Bankruptcy Remote Entity, Springing Guaranty, Springing Recourse, Substantive Consolidation.
"The Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson and Dan Flanigan, and digital editor, Christopher Ward, who have a combined total of more than 130 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.