In 2005, the bank approved a $640 million construction loan so Trump could build his name-sake tower in Chicago. The tower, with dozens of multimillion-dollar condos, broke ground at the height of the real-estate boom. As the project neared completion, the financial crisis hit, sending the global real-estate market crashing. And when part of the loan came due, rather than pay it, Trump sued a lending consortium led by Deutsche Bank for $3 billion.
Force Majeure
His suit argued that the financial crisis was equivalent to an earthquake, triggering a “force majeure” clause, which allows for a payback extension in extraordinary circumstances. Deutsche Bank
countersued, claiming Trump owed a $40 million payment, which was a personal guarantee on the debt. The two later
settled and, surprisingly, continued doing business together.
He also has two mortgages against his Trump National Doral Miami resort and a loan against his tower in Chicago. All four debts come due in 2023 and 2024. Garten said the Chicago loan no longer has Trump’s personal guarantee because the project has been completed.