Bad Boy Acts/Carve-Out
An exception to the non-recourse nature of a loan that provides for a loan party to have full or partial personal recourse liability for the loan in the event certain events occur, such as filing a voluntary bankruptcy action); In a traditional subscription-backed credit facility: typically apply to the general partner of the fund borrowers/guarantors and are limited to actual damages of the lender arising as a result of the fraud, willful misrepresentation or willful misappropriation of loan or capital contribution proceeds on the part of such general partner.