Hurst v. Stith Equipment Co.

Marshall, Judge.

Appellants Genora Hurst and her son, Lawrence Hurst, entered into a guaranty agreement in favor of Credit Alliance Corporation and its "parent, subsidiary or assignee,” to be liable for the obligations of Gate City Erectors, Inc. The appellants each owned one-third of the stock of Gate City. Credit obtained the guaranty as part of an arrangement wherein Credit furnished financing to Gate City on a continuous basis to enable Gate City to buy and lease truck cranes.

The "Guaranty” provides, in pertinent part: "To induce you [Credit] to enter into one or more security agreements,…