What is bad-boy carve-outs?
Exceptions (fraud, misapplication of funds, unauthorized transfers, waste, environmental harm, voluntary bankruptcy) that make an otherwise nonrecourse borrower personally liable.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.