When a loan is granted, there are always inherent risks for a lender. That is why, following their analysis, institutional lenders assess their risk.
When a loan is granted, there are always inherent risks for a lender. That's why, following their analysis, institutional lenders assess their risk. Sometimes, in their financing offer, they require additional guarantees including guarantees in the form of guarantees up to a percentage of the amounts owed to them.
Thus, a shareholder, after guaranteeing his company up to 20% of all sums owed to the creditor, refuses, following the loan recall, to pay the latter the sum of $250,000. He argues that there is ambiguity between the offer letter and the guarantee contract. He claims that the amount he owes should be calculated after the liquidation of the assets of the company and not at the time of the recall of the loan.
Seized with the case, the court* rejects the shareholder's arguments and sides with the creditor by ruling that:
The signatories of a guarantee contract never anticipate being forced to repay the amounts owed to the creditor one day. They tend to forget that life is a winding path filled with pitfalls.
*C.A. 200-09-009452-175This browser does not support this kind of file. Please download the file to view it: Download the file