Eric Walker, financial restructuring and bankruptcy associate in Chicago, recently wrote an article for the June 2011 issue of Secured Credit Committee Newsletter, a section of the American Bankruptcy Institute. The article analyzes the early decisions dealing with the use of nonrecourse carve-out clauses and “springing” or “bad-boy” guarantees in commercial lending. He notes that case law dealing with their enforceability is not very well developed and the courts that have addressed these issues have uniformly held that such lender safeguards are generally enforceable.