Opening: "I'm Laura Munoz and welcome to Let's Talk Commercial Real Estate a newly created video blog covering topics of interest for commercial brokers and borrowers sponsored by American Life Financial. We'll be chatting with members of the real estate community asking them questions that you use submit on social media."
Laura Munoz: Hi I'm Laura Munoz and welcome to Let's Talk Commercial Real Estate. Today we have Jeremy Yatta Yatta Lewis, he is an underwriter at American Life Financial.
Jeremy Lewis: Thank you, yes a pleasure to be here.
Laura Munoz: It's nice to have you, well, so I've heard this term a lot people ask - something about bad-boy carve-out. What does that mean?
Jeremy Lewis: It means effectively that our loans will be non-recourse, except in the event of bad behavior on the borrower's part in terms of fraud or basically doing stuff that isn't cope aesthetic as they say. It's essentially a non-recourse loan or it is a non-recourse loan but we'll have carve-outs for, as I said basically cases where you cook the books or do some Enron esque sort of behavior that then says well gee we're going to be non-recourse but you lied to us and behaved in a way that isn't commercially reasonable and so yeah that's not gonna work.
Laura Munoz: That's not a good thing, well thank you for being here, it was a pleasure.
Jeremy Lewis: My pleasure (pause) TA-DAAA.
Closing: "Have topics or questions you'd like covered on let's talk commercial real estate? Or if you'd like to be a guest on Let's Talk Commercial Real Estate, please contact us at firstname.lastname@example.org. Like us, follow us and share us on social media."
Jeremy Lewis underwriter at American Life Financial clarifies the meaning of Bad Boy Carve outs to our hostess.