Farmer v. Peoples American Bank

Evans, Judge.

In 1970, Color World International, Inc. sought to borrow $178,000 from Peoples American Bank of Atlanta, which is now a part of First Georgia Bank. The borrower lacked sufficient security, and the bank required a number of borrower’s stockholders to execute individual guarantees of payment in the amount of $10,000 each. James W. Farmer executed such agreement guaranteeing $10,000 on April 15,1970. The loan to Color World was executed on April 17, 1970.

Thereafter, Color World suffered financial problems and business reverses. It became overdrawn at the bank, *752which required a…