Provident Bank v. Gast

The fundamental issue raised in this appeal requires a statutory analysis of R. C. 1303.72(A) (1) (Uniform Commercial Code Section 3—606[1] [a]), and can be phrased as follows: When a holder of a note releases two of four co-guarantors from their guaranty, does that release totally discharge the remainiixg guarantors or does it discharge them only to the extent of their right to contribution from the previously released parties?

The trial judge concluded that the discharge was limited, in that the $15,000 guaranty of the appellees was reduced by $7,500, or the extent of their riglxt of…