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Loan for Partnership

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Question: 
We have made a loan for a partnership which has four partners. In the past, we have had a separate guaranty for each partner. Now our new officer is saying that we do not need separate guarantees as long as they all sign on the note. Is this true?
Answer: 

If they sign the note as individuals that would be true. If they sign as partners, then you would need the guarantees if you want them personally liable for the debt.

First published on BankersOnline.com 8/30/10

First published on 08/30/2010

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