Turnberry Residential Ltd. Partner v. Wilmington Trust FSB

OPINION OF THE COURT

Moskowitz, J.

This appeal presents us with the rare opportunity to analyze a completion guaranty. This sort of guaranty differs from an instrument that guarantees payment. A guarantee of payment typically guarantees a borrower’s debt. A completion guaranty guarantees the completion of a project (usually a construction project) should the borrower be unable to do so. Unlike a payment guaranty that is enforceable only after the primary obligor fails to perform, a completion guaranty is often a primary obligation of the guarantor.

In June 2007, a syndicate of lenders (the…