Chemical Bank v. Meltzer

In 1984 plaintiff bank’s predecessor in interest purchased a bond issued by the Town of Brookhaven Industrial Development Agency in the face amount of $1.1 million. As security for payment of the debt evidenced by the bond, the purchaser bank was given a mortgage upon the real property whose development was to be financed with the funds from the bond sale. Additionally, guaranties of the bond’s payment were given the bank, respectively, by defendant Major Building Products Wholesalers, Inc. (hereinafter Major), the lessee of the facility to be constructed by the Industrial Development Agency,…