Grayson v. Platis

— If a guarantor unconditionally promises payment of an obligation on behalf of a debtor, the guaranty is deemed absolute. And absent fraud or bad faith, an absolute guarantor has no recourse against the lender outside the provisions of the guaranty. The parties here altered the provisions of a guaranty so as to provide Harry Platis with a right to notice of actions resulting in impairment of collateral the Tanaka Trust held in consideration for the underlying loan. The extension of that right, however, did not carry with it the further duty that the Tanaka Trust act without negligence when…