Is a guarantor who signed a guarantee for a bank in the form of an agreement with the other guarantor of the bank, who subsequently defaults on the loan?
Ontario, Canada
The following excerpt is from Bank of Nova Scotia v. 1241139 Ontario Limited, 2000 CanLII 16834 (ON CA):
The other person eventually did sign similar guarantees for the bank and the bank has obtained default judgment against him and is prepared to assign the judgment to the appellant. As such, the appellant has whatever benefit he would have had, even if the alleged representation was made, which is denied, and even if such representation were admitted as evidence at trial, which is unlikely as it contradicts the “entire agreement” clause contained in the guarantee form: Hawrish v. Bank of Montreal (1969), 1969 CanLII 2 (SCC), 2 D.L.R. (3d) 600 (S.C.C.). We were advised, in any event, that the other guarantor is in bankruptcy.
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