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Loren, Attorney
Category: Business Law
Satisfied Customers: 33999
Experience:  30 years experience representing clients .
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My corporation is borrowing funds practice startup with me

Customer Question

My corporation is borrowing funds for a practice startup with me providing a personal guaranty. I am in Illinois. The lender is in California. My question is on the following language in the guaranty:----------------------------------------------
This is a continuing guaranty and shall not be discharged or affected by death of the undersigned, shall bind the heirs, administrators, representatives, successors and assigns of the undersigned, and may be enforced by or for the benefit of, any assignee or successor of the lender
-------------------------------------------------Does this mean, if something happens to me, the loan passes on to my family and the lender can go after them or their personal possessions?This is confusing to me because the practice, its equipment and all its possessions are already collateral for the loan. So if I die, the collateral is taken over by the lender to make them whole, correct? Then why is this language included? Is it standard or should I request that it be struck off?Thanks.
Submitted: 1 year ago.
Category: Business Law
Expert:  Loren replied 1 year ago.

Good morning. I am Loren, an Illinois licensed attorney, and I look forward to assisting you.

It means that your estate will have continuing liability for the loan.

It will NOT make your heirs personally liable for the debt.

Expert:  Loren replied 1 year ago.

It is standard language in a guaranty and will burden your assets, but not the heirs.

Expert:  Loren replied 1 year ago.

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