Burke v. North Fork Bank & Trust Co.

The plaintiff executed a personal guaranty to guarantee a $50,000 loan taken by Robert E. Burke, Jr., the third-party defendant. She does not dispute the authenticity of her signature on the guaranty. The guaranty was secured by the plaintiff’s certificates of deposit on deposit with the defendant. When the third-party defendant defaulted on the loan, the defendant set off the outstanding balance, $49,743.47, against one of the plaintiff’s certificates of deposit.

Contrary to the plaintiff’s contention, even if the guaranty were supported by past consideration, under General Obligations Law §…