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Client Alert: The Good Guy Guaranty – The Benefits and Pitfalls – May 14, 2020


The  “good guy guaranty,” is a unique New York agreement designed to address the delays that landlords experience in attempting to recover possession of leased premises from non-paying tenants, while providing tenants with an option to reduce the amount of security they must pledge to secure a lease and avoiding the need to guaranty performance by the tenant of a lease for its full term. Good guy guaranties are particularly relevant in the COVID-19 environment, whether a party is looking to exit a lease or enter into a lease; but, whether looking at a lease in the COVID or post COVID markets, landlords and tenants need to understand the complexities, the pitfalls and the benefits of the good guy guaranty. Moreover, legislation just enacted by the New York City Council may be have some impact on the enforcement of a good guy guaranty.  This alert, which discusses  nuances, pitfalls and legislation pertaining to the good guy guaranty can be found here.