The law governing California real estate investment, development, and secured lending evolves in real time | Lessons from the courtroom battlefront….

Construction Loans Gone Bad

In January, I posted about a recent decision from the California Court of Appeal (Fourth District in Riverside), California Bank & Trust v. Del Ponti, which addressed the limits of guarantor waivers in the context of a defaulted construction loan.

That same Court of Appeal decision also illustrated the ways in which construction loan duties and liabilities can shift when a construction lender steps outside the conventional role of lender, and “steps into the shoes of the developer.”  I had the privilege of posting on this second aspect of the Del Ponti decision on my partner Garret Murai’s acclaimed California Construction Law Blog.

A link to my post: “When a Construction Lender Steps into the Shoes of the Developer, the Door is Open for Claims by the General Contractor” is here.  Enjoy!

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