West Des Moines State Bank v. Pameco, Inc.

HABHAB, Judge.

On July 22, 1987, Pameco, Inc. executed a promissory note for $350,000 to the West Des Moines State Bank. Emery and Ada Jackson were the sole shareholders of Pa-meco. The note was secured by a mortgage on certain commercial property at 800 University Avenue in Des Moines. The Jacksons personally executed a continuing unlimited guaranty to the Bank. The Jack-sons’ son, Michael Jackson, also executed a continuing guaranty, which was limited to the amount of $35,000.

In early 1990 the Jacksons sold their interest in Pameco to Michael and his partner, Roger Severson, who together…