In general, commercial real estate loans are non-recourse in nature and the lenders ultimately look to their collateral for the satisfaction of the borrower's obligations if the loan goes into default.

However, lenders typically require guaranties and other credit support from creditworthy individuals or entities, making the guarantors personally liable for certain obligations. The five types of guaranties most commonly required in connection with commercial real estate loans are non-recourse carveout (or "bad-boy") guaranties, environmental indemnities, repayment guaranties, carry guaranties, and completion guaranties.

When and how the guarantor is released from liability under each of these guaranties is a key point of negotiation between lenders and borrowers/guarantors that has implications for other lenders and investors with interests in the collateral.