Gandy v. Park National Bank

We granted certiorari to review the decision of the court of appeals in Park National Bank v. Gandy, 42 Colo. App. 203, 595 P.2d 704 (1979). We now reverse.

The facts are not in dispute. On February 28, 1975, the U.S. National Mortgage Company borrowed $25,000 from respondent, Park National Bank (bank), giving two promissory notes, one for $15,000 due in ninety days, and one for $10,000 due in sixty days. The interest rate on both notes was eleven and one-half percent. On the same day, petitioner, Robert A. Gandy, executed a “Continuing Guaranty” of the notes with individual liability not to…