In most cases, the lender will require an individual who has control of or a controlling interest in the borrower to guaranty the loan to the extent of the recourse liability arising from the non-recourse carve-outs.he second type of non-recourse carve-outs includes acts or events that result in recourse liability only to the extent that the lender suffers a loss from such a carve-out event. Examples are: 1  Fraud or misrepresentation, 2  Gross negligence or willful misconduct, 3  Any environmental indemnification,
Quite simply, a balloon payment is a lump sum payment that is attached to a loan. The payment, which has a higher value than your regular repayment charges, can be applied at regular intervals or, as is more usual, at the end of a loan period.
It is safe to assume that after six years your car would have lost 50% of its value and would be worth R110 000. The value of the balloon payment. A 40% balloon repayment means that you have a debt of R88 000 which you are not paying off. This means you are paying interest on R88 for six years. At an interest rate of 11,5% (I have assumed 2% above prime) you will pay R87 000 in interest on that R88 000 balloon payment over 72 months.