The law regarding enforcement of special guaranties
has evolved in the state of Florida.
What is unfortunately certain is that landlords and obligees under guaranties
and other contracts will have to consider carefully the impact of allowing a default to be cured rather than immediately exercising all rights available at the time, including immediately engaging outside counsel and perhaps commencing litigation as a defensive measure prior to any resolution of defaults.
Standard & Poor's financial enhancement ratings (FERs), which offer an opinion of the creditworthiness of insurance policies used as credit enhancement or financial guaranties
, have helped the situation.
Our law is well enough established to at least point to the problems, if not the solutions, relating to the enforcement of lease guaranties
, The most frequent type of problems arises in a bankruptcy affecting the tenant or the guarantor.
Public Finance page and looking at the criteria reports listed in the Financial Guaranties
section, or by contacting Market Services at 800/853-4824.
ACE has been involved in financial guaranties
through a joint venture with Capital Re since March 1998.