Legal Question in Credit and Debt Law in Michigan
guarantors for a promissory note
We are/were guarantors for a
promissory note which was to
mature on a date in 2006. When
that date passed, we assumed our
obligation was over; we have moved
out of state and this note regarded a
project in another state. However,
we have since learned that, without
our knowledge or consent, the loan
has been extended. Is this legal? Is
it the case that our guarantorship
will never be over as long as the
bank decides to keep extending the
loan? Is it not necessary for a bank
to inform guarantors of the status of
the loan? We have the note in our
possession with the maturation date
of 12.6.06.
2 Answers from Attorneys
Re: guarantors for a promissory note
The answer to your question about whether or not you are still liable as personal guarantors depends on the language of the contract you signed. If as a result of the contract being extended, new contracts were entered into, you may not be liable. It is a good issue to bring to an attorney who can review your documents and apply the law to your set of facts.
Good luck
Re: guarantors for a promissory note
Usually, they would need your consent. Read the note.