at great length here, two issues bear mention:  First, the guaranty should always be dated concurrently with underlying loan documents such that the lender can assert that the loan would not have been made but for the guaranty.  Second, lenders should require that, in those instances where secondary collateral not owned by the borrower is pledged, the owner of the secondary collateral should execute a “limited” guaranty or another document memorializing the rationale behind and basis of the collateral pledge.

 

             The potential liability of a guarantor is interpreted in accordance with different state statutes; additionally, the courts have interpreted the liability of a guarantor depending upon the specific language used in the guaranty document.  To that end, after a loan has been closed, lenders should always consult with counsel before entering into any transactions with a borrower or a guarantor, or otherwise involving collateral pledged in connection with a loan or a guaranty, to be sure that any such transactions do not unintentionally release or limit the guaranty or additional collateral.