Legal Question in Business Law in Nevada

Personal guarantor

I'm a CFO for my company and I'm a

personal guarantor on some of the

line of credits and supply lines. I

signed a resolution with my company

stating that I'm only borrowing funds

and applying credit on behalf of the

company only and I'm not held liable

or personally financially responsible

for any reason and purpose. I want

to know if those notarized and sealed

resolutions will protect me if my

company ever goes down?


Asked on 1/12/09, 4:11 am

3 Answers from Attorneys
James Smith James E. Smith Ltd.

Re: Personal guarantor

When you make a personal guarantee you are on the line for that debt. The provisions in your by laws or the statutes do not insulate you insofar as the third party creditor against your personal guarantee.

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Answered on 1/12/09, 7:23 am
Jeffrey Cogan Jeffrey A. Cogan, Esq., Ltd.

Re: Personal guarantor

What you may want to try to do is limit the personal guarantee to past loans. If a loan is paid off and then the company gets a new one with the same lender, your guarantee will apply to the new loan unless you advise the lender that your guarantee is limited to loans already signed.

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Answered on 1/12/09, 10:22 am
Warren Markowitz Warren R. Markowitz, Esq

Re: Personal guarantor

If you signed as a personal guarantor to a loan for your company you will be responsible for the loan should the company fail to make its payments. This is regardless of the level of liability that you were able to receive from the company through a board resolution.

If you are looking to remove yourself from such potential problems you must speak directly with the lenders and arrange to be removed from the notes. They are the only ones that can accomplish this as they are the ones that made the loans with you as a surety.

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Answered on 1/12/09, 12:51 pm


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