Citizens National Bank v. Hanes

WASSERSTROM, Judge.

Citizens National Bank sues Hanes on his guaranty of loans made by the Bank to Allied Broadcasting Company. The trial court, after hearing without a jury, entered judgment for the Bank. Hanes appeals.

The facts are undisputed. On January 5, 1970, Allied had 23 stockholders of whom 19 owned 320 shares each and four of whom owned 160 shares each. Allied had become financially straitened and needed bank loans. The Bank was willing to extend the needed money, but only if all of Allied’s stockholders would personally guarantee the loans. In response to that demand, all of the…