Law Commons^™

The Risks Of Insider Guaranties, Douglass G. Boshkoff

Articles by Maurer Faculty

Loan payments made within a year of a bankruptcy filing could be considered avoidable preferences if the loan were guaranteed by a corporate insider. In this article, Prof Boshkoff argues that bankers should value insider guaranties only as a second source of payment, not for any subtle pressure they may exert on the borrower.