Keiley v. Cleage

In order to enable an industrial corporation to borrow money from a bank, certain stockholders and directors of the corporation entered into a contract with a bank as follows: “ The undersigned stockholders and directors in the Rock Springs Coal Company of Turley, Tenn., in consideration of your bank giving to this company a line of credit of ten thousand dollars ($10,000) on their notes to be renewed from time to time, without notice to us, guarantee the payment of this loan to your bank, this obligation to hold good until we give you notice in writing to the contrary.” The bank loaned the…