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WiseOwl58, Lawyer
Category: Real Estate Law
Satisfied Customers: 3686
Experience:  Experienced real estate lawyer and real estate broker.
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When a qualified non recourse loan was refinanced and

Customer Question

when a qualified non recourse loan was refinanced and personally guaranteed by two of the many partners it disappeared from the K1 and now the other partners have a gain because there no longer is a non recourse loan on the k1. isn't the partnership still
liable for the non recourse loan even if only two partners personally guaranteed it?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  WiseOwl58 replied 2 years ago.
Yes, the partnership is the borrower and ultimately responsible for repayment of the loan. It is only if the partnership defaults on the loan that the lender can collect from the partners who guaranteed it. YOu are correct in your assumptions here.

Good luck to you. I wish you all the best.