Legal Question in Business Law in Georgia

Default of Non Profit Lease Payments

I would like to know if the officers of a non profit can personally be sued for non payment of commercial property rent by the landlord. The lease was signed bythe president, secretary and VP as lease guarantors.

Lease reads as follows:

Guarantor does hereby agree that if any and all sums which are now or may hereafter become due from

Tenant to Landlord under the Lease are not paid by Tenant in accordance with their terms, Guarantor will

immediately make such payments.


Asked on 9/30/07, 3:02 pm

3 Answers from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Default of Non Profit Lease Payments

If you have a reasonable basis, you can sue anyone. However, if the officers signed personal guarantees, you can certainly sue them personally.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 10/01/07, 9:08 am
Paula McGill Attorney at Law

Re: Default of Non Profit Lease Payments

The wording in the agreement speaks for itself. If an individual or company signs as a guarantor for anyone (under the language you provided) and there is a default, the guarantor becomes liable.

Of course, the officers who are ultimately held responsible for the lease payments should seek reimbursement from the non-profit company.

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Answered on 10/01/07, 9:24 am
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Default of Non Profit Lease Payments

The sole purpose of a personal guaranty is usually to make the person liable for the debt of a company (or another person), and subject to a lawsuit for payment.

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Answered on 9/30/07, 7:05 pm


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