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.


Asked on 1/27/07, 9:33 am

2 Answers from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

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

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Answered on 1/27/07, 9:50 am
David Slater David P. Slater, Esq.

Re: guarantors for a promissory note

Usually, they would need your consent. Read the note.

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Answered on 1/27/07, 10:23 am


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