Capital Bank v. Engar

This is an appeal by defendant Capital Bank from an adverse declaratory judgment which discharged the plaintiffs H. Stuart Engar and Marlene D. Engar from a continuing guarantee on a corporate debt owed to Capital Bank. We affirm the declaratory judgment under review upon a holding that Capital Bank’s subsequent restructuring of the guaranteed corporate debt [without the consent of the plaintiff guarantors and after they had revoked the guarantee as to any new debts pursuant to the terms of the guarantee] so that any payments on the restructured debt would first have to be applied to and…