Corn Exchange Bank Trust Co. v. Gifford
New York Court of Appeals
The contract of guaranty should be given a reasonable interpretation and all the provisions thereof should be given full effect and this can be done only by construing the power to revoke as terminating the continuing nature of the guaranty and preventing the guaranty applying to any new indebtedness, but not to the indebtedness already incurred, including “ renewals ” or “ extensions of time of payment of the then existing indebtedness.
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The contract of guaranty should be given a reasonable interpretation and all the provisions thereof should be given full effect and this can be done only by construing the power to revoke as terminating the continuing nature of the guaranty and preventing the guaranty applying to any new indebtedness, but not to the indebtedness already incurred, including “ renewals ” or “ extensions of time of payment of the then existing indebtedness. (Powers v. Clarke, 127 N. Y. 417; Schmitz v. Langhaar, 88 N. Y, 503; Smith v. Molleson, 148 N. Y. 241; Shultz v. Crane, 6 Hun, 236; 64 N. Y. 659; Gurley v.…
1Opinion of the Court
Ceane, Ch. J.
On April 11, 1930, Tompkins & Bevers, Inc., borrowed $100,000 from the Eighty-sixth Street Branch of the Corn Exchange Bank Trust Company for the purpose of buying 3,337 shares of Hudson River Yards. On that date the corporation gave the bank its promissory note for that amount with interest payable on October 14, 1930. As collateral security for the payment of the note, the corporation deposited and pledged with the bank the stock and also gave the personal guaranty of the president and treasurer of the company. The note was dated April 11, 1930, and was payable the 14th day of…
2Cited by18 opinions
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- First New Jersey Bank v. FLM Bus. MacHines, Inc.New Jersey Superior Court Appellate Division · 1974
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