Central Bank & Trust Co. v. Diaz

Central Bank and Trust Company sought to foreclose a mortgage executed by Diaz, securing Diaz’s contemporaneously executed guaranty to pay the outstanding debts of a corporate automobile dealership in which Diaz was the majority shareholder. The trial court, concluding from Diaz’s testimony that the parties intended the mortgage (despite its clear and unqualified language) to collateralize only a certain limited part of the guaranteed corporate indebtedness and finding further that such limited part had been paid, denied foreclosure. The bank appeals.

We reverse upon a holding that (1) because…