Highlands Cable Television, Inc. v. Wong

O’QUINN, Justice.

The parties to this action are Highlands Cable Television, a corporation, and all of its five stockholders.

In connection with purchase and improvement of a cable television system in the area comprising and surrounding the city of Marble Falls, Highlands Cable in 1971 borrowed substantial sums of money from the City National Bank of Austin, and granted City National deed of trust liens and security interests on substantially all of its corporate assets. As a condition of the loan, each of the five stockholders executed separate guaranty contracts agreeing to pay to the bank,…