If triggered by enumerated bad acts, bad boy guarantees require the borrower and/or guarantor to be personally liable for damages to the lender, or alternatively, converts an otherwise non-recourse loan into a full-recourse loan as against the borrower or guarantor.ltimately, mortgage lenders will continue to ask for bad boy guaranties triggered by bankruptcy and other bad acts. As mezzanine lending becomes more available, mortgage lenders and borrowers have an opportunity to assert new practices which seek to limit mezzanine lenderâs leverage in a foreclosure situation.
BREAKING DOWN 'Balanced Fund'. A balanced fund is geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts that such a mutual fund invests into each asset class usually must remain within a set minimum and maximum.
One of the biggest dangers of investing in a balanced fund is the possibility that the mutual fund expense ratio, which is the costs paid by the mutual fund on behalf of the mutual fund shareholders, might be higher than if you were to buy two separate funds, one an equity (stock) fund and one a fixed income (bond) fund.