Provisions within nonrecourse commercial real estate loans where the borrower may become personally liable in the event of certain egregious acts (e.g. fraud). Recently, lenders have expanded the scope of carve outs to include risks of exposure to the property's economic deterioration or neglect.
Global Definitions Database
Carve-outs (lending)
Source: NCREIF PREA Reporting Standards | Date: 29 April 2020 | ID: D0222 | Version: 2