Chemical Bank v. Pocono Country Place, Inc.

LASKER, District Judge.

A Pocono Country Place, Inc. (“PCP”) is a corporation engaged in the acquisition, subdivision, and sale of recreational real estate. Because few of those who purchased PCP’s lots were able to finance them on a cash basis PCP arranged installment sales contracts for buyers. On January 25, 1973, PCP entered into a Developer’s Agreement (“the Agreement”) with Yegen Development Corporation (“Yegen”) in which Yegen agreed to buy PCP’s customers’ outstanding notes and contracts. According to the terms of the Agreement PCP agreed, inter alia, to guaranty each payment and to…