Bank of America National Trust & Savings Ass'n v. Schulson

PRESIDING JUSTICE CAHILL

delivered the opinion of the court:

Plaintiff Bank of America National Trust and Savings Association sued defendants Michael Schulson and Robert Blessing to enforce guaranties defendants made for a loan. The dispute centers around the meaning of a “burn down” clause that reduces the amount guaranteed as principal payments are made “with respect to the liabilities.” The bank argues on appeal that the trial court erred in applying the burn down clause to collateral proceeds paid over to the bank in a bankruptcy action almost two years after the guarantors’ obligations…