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Principals personally liable under forbearance agreement despite prior guarantee release.
The plaintiff bank brought a summary judgment motion against a corporate borrower and its principals following default on credit facilities.
The corporate defendant did not dispute the indebtedness.
The primary issue was whether the individual defendants were personally liable under a forbearance agreement after prior guarantees were released.
The court interpreted the commercial contract as a whole and concluded that the individuals were jointly liable for the monthly forbearance fee and for failing to convey assigned tax credits, as expressly contemplated by the agreement.
Summary judgment was granted in favour of the bank against both the corporation and the individual defendants.
