Legal Question in Credit and Debt Law in New Jersey
Liability for repayment of loan
The CEO of a company signs a loan agreement for the company to borrow $50,000 from an individual. The company defaults on payment of the loan. Question - can the CEO be sued personally for payment of the loan?
1 Answer from Attorneys
Re: Liability for repayment of loan
The answer depends on whether the individual to whom the loan was made can prove that the CEO personally guaranteed the loan, which means more than just signing the loan agreement in the name of the corporation. For example, if the CEO also signed the agreement a second time without using his corporate title, or even if he orally promised to pay the loan himself if the corporation defaulted, then you might have a case. If you would like to discuss your case further, please give us a call at 201-963-6445 to schedule an appointment. SANTORELLA & WHEATLEY, P.C., Parc Plaza, 590 Newark Ave., Jersey City, NJ 07306.
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