The District of Columbia Clawback Guaranty is a legal provision that ensures the recovery of certain funds or assets in the case of default or non-payment. It is a form of financial security that protects lenders or financiers from potential losses. This guarantee typically arises in the context of real estate deals, loan agreements, or investment transactions. Keywords: District of Columbia, Clawback Guaranty, recovery, default, non-payment, financial security, lenders, financiers, losses, real estate deals, loan agreements, investment transactions. There are two main types of District of Columbia Clawback Guaranty: 1. Real Estate Clawback Guaranty: In real estate transactions such as commercial leasing or development projects, property owners or developers may require a clawback guaranty from the lessees or investors. This provision allows the property owner or developer to reclaim a portion of profits, rental income, or appreciation in the event of default or breach of contract by the lessee or investor. It acts as a safety net to protect the property owner's or developer's interests and mitigate potential financial risks. 2. Loan Clawback Guaranty: This type of guaranty is commonly used in loan agreements, particularly for business loans or commercial financing. Lenders may request a clawback guaranty from a third-party guarantor or the borrower's principals. It ensures that in case of a loan default or non-payment, the lender has the right to recover assets or funds from the guarantor or principals. This type of guaranty provides an additional layer of security for lenders and helps reduce their exposure to potential losses. In summary, the District of Columbia Clawback Guaranty is a legal protection that enables the recovery of funds or assets in case of default or non-payment in various contexts such as real estate deals and loan agreements. It acts as a safeguard for lenders or financiers, allowing them to mitigate potential financial risks.