As part of the collateral package, virtually all commercial real estate loans provide for one or more guaranties in addition to a mortgage on the real property.  These may include a full guaranty of repayment of the debt, a “carry” guaranty in respect of payment of interest and property operating expenses, a completion guaranty in respect of construction, and, almost universally, a guaranty of non-recourse carveouts.

Scott A. Weinberg, partner at McDermott Will & Emery

Lenders require these guaranties (typically from a principal of the borrower) as credit support and as an inducement for borrower to take or refrain from taking certain actions which could impact repayment of the loan (e.g., to complete construction or not file for bankruptcy, etc.).