LSREF2 Clover Property 4, LLC v. Festival Retail Fund 1, LP

Since guarantor structured a real-estate secured loan to an affiliate for its own business reasons and guaranteed only 5% of the loan amount, there was no substantial evidence that guarantor was the principal debtor or that the transaction was a sham to avoid the anti-deficiency laws.  Judgment for the guarantor of a defaulted real-estate secured…