In Washington State, what is the effect of a sale or assignment of a promissory note and deed of trust on a per. guaranty?

Asked 10 months ago - Seattle, WA

The personal guaranty was not sold or assigned with the note or DoT (or even mentioned). Does this effect the enforceability of the personal guaranty now? I've heard of personal guaranties being considered 'special guaranties' that can't be assigned absent a a specific provision in the promissory note in other states but I do not believe that this is true in Washington. i looked in the revised code of Washington already but did not find anything helpful. The DoT originally secured a large commercial property. Thank you in advance for your help.

Attorney answers (3)

  1. Michael Duane Daudt

    Contributor Level 11

    3

    Lawyers agree

    1

    Answered . The guarantor will remain liable for the note unless the lender releases the guaranty.

  2. Katie Jean Comstock

    Pro

    Contributor Level 10

    2

    Lawyers agree

    1

    Answered . A personal guaranty is reviewed as a contract. You should review the guaranty with an attorney to see if there is any language that will terminate the guaranty upon assignment.

  3. Shawn B Alexander

    Pro

    Contributor Level 20

    Answered . I agree with the previous answers and the language of the note could have made it assignable or excluded assignability. If the note was a payable to order or to bearer RCW 62A. 3-109 & 203 may give you some guidance but there are other factors that will be important.
    Take all the documents in question to a lawyer for a consultation.
    Good Luck

    Please be sure to indicate the best answer. If this answer was helpful, please mark as helpful below. Only. If... more

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