Hendershot v. Charleston National Bank

I dissent to the holding of the majority that the guarantor is not released from his obligation. I would deny transfer or grant transfer and affirm the Court of Appeals as I feel it reached a proper result considering the facts and circumstances of this case.

Judge Buchanan, writing for the majority, acknowledged the application of Section 122(b) of the Restatement of Securities which provides that where the creditor releases a principal debtor the surety is discharged unless the creditor in the release reserves his rights against the surety. As Judge Buchanan pointed out, this contemplates…