Westinghouse Credit Corp. v. Hydroswift Corp.

*157CROCKETT, Justice:

Plaintiff Westinghouse Credit Corporation sued upon a written agreement by which defendant Hydroswift Corporation guaranteed payments on trust receipts on boats and equipment which were assigned to plaintiff as security for money it advanced under a financing plan. Hydro-swift asserted two defenses: (1) that it was not shown that execution of the guaranty was authorized by corporate resolution; and (2) that after plaintiff had knowledge that the' purchaser was in default and selling equipment in violation of its agreement, plaintiff negligently and fraudulently failed to…