(Court opinion corrected 11/30/16.) Defendants appeal from $18.42 million judgment entered against them on a guaranty agreement they executed in favor of Plaintiff bank. Bank made 2 loans to Defendant LLC totaling $22.45 million, memorialized by 2 Notes. Bank filed suit when Defendants defaulted. Provisions of Guaranty Agreement fixing liability of guarantors are not ambiguous. Guarantors' liability for interest under terms of Guaranty Agreement is limited to accrued and unpaid interest under the Notes, but not post-judgment interest owed and accruing after entry of Judgment Order of Foreclosure and Sale. When drawn upon, $4 million in proceeds of letter of credit, issued by another bank on the order of its named clients (not the guarantors) were properly applied to sums due by Defendants under the Notes. Remanded for recalculation of amount due by guarantors. (ROCHFORD and DELORT, concurring.)
Illinois Appellate Court
Civil Court
Foreclosure