Here is a case that sums up the risk a lender faces when its notice of default is defective. The guarantor might be “off the hook.”
“Where a contract of guarantee specifically provides for notice of default, the failure to give such notice discharges the guarantor’s obligations.” Pergament v. Herrick Credit Corp., 200 N.Y.S.2d 535, 540 (Sup. Ct., Kings Co., Spec. Term 1960) (citations omitted).
If you have any legal questions or need help with a notice of default or guaranty, please contact Attorney Scott Lanin at (212) 764-7250 x 201 or use the contact form in the right sidebar.