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Florida Personal Guarantees

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  • 02-22-2010, 07:54 PM
    floridamover
    Florida Personal Guarantees
    My question involves collection proceedings in the State of: FL

    I was part of an LLC involved in the construction of a residence, of which I signed a personal guarantee along with the other members for a percentage of the entire investment. Subsequently, I was bought out by another member and dissolved myself from the LLC.

    The LLC then traded the residence for a piece of commercial property of which I never signed on the new mortgage which required unlimited and unconditional personal guarantees. The property is now in default. To make matters more complicated, there is a new lender as the previous bank went under.

    I made the mistake of never getting a release from the bank at the time I got out of the LLC. The managing partner assured me that the release from the LLC was enough.

    Can I still be held personally liable for the default? Should I consider suit against the managing partner for his negligence? I'd appreciate any advice on this matter!
  • 02-24-2010, 07:46 AM
    Mr. Knowitall
    Re: Florida Personal Guarantees
    You signed a personal guarantee.... for any and all debts of the LLC, open ended, against any creditor? Or what?

    Was the guarantee you signed used to provide the lender for the new mortgage with its requested "unlimited and unconditional personal guarantees"? Or was a different instrument used to guarantee that loan?
  • 02-24-2010, 09:56 AM
    floridamover
    Re: Florida Personal Guarantees
    The first guaranty was for a percentage of the total amount of the loan (i.e., the percent to which I was invested) to represent my share of indebtedness.
    The second guaranty, which was a "continuing unlimited guaranty", was an entirely separate instrument. I never signed it and subsequently dissociated from the LLC (and have documentation supporting this with the other LLC members signatures).
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