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Barnes & Thornburg LLP | USA | 10 Sep 2009

Furher case law developments involving enforcement of guarantees

If a guarantor, one of the owners of a borrower, executes and delivers a guaranty of payment of the borrower’s debts owed to a creditor in return for a promise by that creditor to consider extending additional financing to the borrower and principal obligor, will that guaranty later be enforceable under Michigan law if the creditor considered the requests of the borrower for further financing but nevertheless refused to extend it?

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