QUESTION
Can a business loan for a corporation affect the personal property of the grantor/president? I have a contract and would like an att. to look at it.
Asked on Dec 13th, 2016 on Corporate Law - California
More details to this question:
I have a business loan contract. Borrower is a corporation. President is grantor. Under COLLATERAL there is listed only the property of the corporation. But under the PERSONAL GUARANTEE AGREEMENT, the personal property of the guarantor/president is also consider as collateral. I would like to have an attorney look at the contract and clarify this.
2 ANSWERS
If any of the property of the corporation is real estate, then you should have a real estate attorney review the documents, especially the guaranty. The interplay of California's anti-deficiency laws and the common law subrogation rights of guarantors, have some unexpected consequences and require language in the guaranty which is unique to California.
Dana Sack
Answered on Jan 08th, 2017 at 1:00 PM
2 Awards
Certainly that could be the case if the individual is a guarantor on the agreement. Please let me know if you would like assistance reviewing the agreement.
Thanks,Jon
Answered on Dec 13th, 2016 at 2:37 PM