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J. Warren
J. Warren, Attorney
Category: Business Law
Satisfied Customers: 2192
Experience:  Experience in general business transaction and formation matters.
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All members of an LLC (and also all partners in a related

Customer Question

All members of an LLC (and also all partners in a related partnership) are signing limited Personal Guarantees for up to 75% of their pro-rata share of a bank loan (in addition to the collateral). The question is do all guaranty agreements have to be the same for all partners or can or the bank allow for some to signed modified versions of the documents. I'd like to know that everyone is signing same document that I am. Does the bank have to disclose the forms signed by others if I request?
Submitted: 3 months ago.
Category: Business Law
Expert:  J. Warren replied 3 months ago.

Hello and welcome! My name is ***** ***** I am an attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

A bank does not have to disclose the amount each is personally guaranteeing although this is usually not kept confidential and is known by all members. A bank is unlikely to allow different amounts of guarantor amounts as each guarantor is jointly and severally liable for the amount of the loan. In other words, the bank can go after each for the amount owed and let them battle out who owes what, but the bank wants to be able to recover the entire amount of the balance from anyone of the members. This typically results in each guarantee the same amount of money.

For example, if the bank is owed $100,000 and there are 4 members, each are guaranteeing $100,000 not $25,000. The bank could allow this but very unlikely and I have never seen it done.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer at the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Expert:  J. Warren replied 3 months ago.

Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. Pressing a positive rating will not cost any additional money - it is simply the trigger used by Just Answer to pay me for my time (pressing the middle star or the fourth or fifth star on the right are all positive rating buttons). I am simply touching base. Let me know. Thanks!