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.
Stock funds include only investments in the stock market. If any of these stocks pay dividends, then the mutual fund also pays dividends. Similarly, bond funds include only investments in corporate and government bonds. Most bonds pay guaranteed amounts of interest each year, called coupon payments. Because bonds pay interest, bond funds do as well. Balanced funds invest in stocks and bonds. Balanced funds, therefore, are almost guaranteed to pay interest, and they may also pay dividends depending on the specific stocks included in the portfolio. Money market funds are the most stable type of mutual fund and include only investments in very short-term debt instruments such as municipal bonds.