How do I request to bank to take your name off as personal guarantor on a corporate line of credit with agreement signed?

Two partners & myself took out a line of credit in our corporate name with each of us personal guarantors. I resigned & a separation release and indemnification agreement was signed by all 3 partners. How do I write a request letter to bank to take my name off line of credit, visa and checking accounts? I want to make sure that my name if off every corporate account. - Is this your question? Add additional information
Answer this question Add to list

Answers (1)

Robert John Murillo

Robert John Murillo

Contributor Level 7
Removing you from any personal guarantee should have been done concurrently with the separation agreement. I am not sure why any attorney would have advised you otherwise. What normally happens is that you contact each party that has your personal guarantee and they provide the terms they will require to remove you, which is normally having a substitute guarantor or other security. Then this provision is a condition to the separation agreement and the agreements with those parties are signed concurrently with your separation.

As a general matter, what agreements you may have signed with your partners will have no legal effect on the guarantee terms and your obligation under that guarantee. Either they agreed to remove you or the guarantee itself has terms that removes your liability on your separation (which is rather rare).

You need to contact the attorney to review the circumstances and determine your righst. Depending on the circumstances and the terms of this release, you may have little to no options in removing these guarantees now.

DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.
0 0
Back to Search Results

Ask a Question

Get free answers from real lawyers.