Actions At Law Are Recognized And Permitted For Deficiencies On Foreclosure By Advertisement, Regardless Of Whether The Mortgage Was Extinguished. via JDSupra

This case arises out of a commercial mortgage-backed securities (CMBS) loan. A CMBS loan has a unique structure: a non-recourse basis in exchange for the isolation of the assets to be financed. Two components of asset isolation are separateness covenants and limited recourse provisions limiting the lender’s general agreement not to pursue recourse liability. Accordingly, in a CMBS financing, in the event on “recourse triggers” on the part of the borrower, the lender’s agreement not to pursue recourse liability against the borrower or owner has limited application, allowing the lender to pursue recourse as part of its remedies.

Read more...Actions At Law Are Recognized And Permitted For Deficiencies On Foreclosure By Advertisement, Regardless Of Whether The Mortgage Was Extinguished. | Warner Norcross & Judd - Appellate Practice Group - JDSupra