Partner Todd R. Regan authored an article entitled "Have an Ironclad Personal Guarantee From a Corporate Officer or Agent? Not so fast—courts, particularly in New York, may be reluctant to enforce it" in the National Association of Surety Bond Producers’ Surety Bond Quarterly Summer 2023 issue.
This article explores pitfalls for creditors to avoid when negotiating a personal guarantee of a corporate debt to ensure that the guarantee is enforceable. Some recommendations include: clarifying whether the individual is signing as a guarantor or a co-obligor; ensuring that the individual signs the agreement in both their corporate role and as an individual guarantor; and avoiding general boilerplate language within a lengthy contract, as it will most likely be unenforceable.
Mr. Regan is a Partner in the firm’s Construction practice group and leads the firm's Surety practice group. He has a wide range of experience throughout the Northeast, representing all participants in the construction and surety industries in project-related claims and disputes and in negotiating and drafting project-related agreements. He also has significant experience representing businesses in complex commercial disputes.
To read the full article, please click here.