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Hi All new to this site but need some advice.
Back in 2004 i signed a personal guarantee with my brother for his business for a £60k loan, and offered up an endowment policy for security worth £30k. I believed that the endowment was for my part of the guarantee
In the loan agreement all of the securities and guarantees were listed as you would expect however was only signed by him the director (him).
In 2007 i requested release of the endowment as the business was performing relatively well of which the bank duly did release this to me and thereofre believed that my liability was removed.
In 2008 he refinanced the business paying off the remainder of the excisting loan and taking another one for £38k, within this loan agreement in the excisting security schedule my name has been struck through, and therefore believed that there was therefore no further liabilty for me as the endowment had been released and not listed in the new agreement security schedule.
Subsequently a few months ago he raised more money through the bank and noticed looking through the paperwork that my name has now reappeard on this agreement as offering guarantee along with him for the £60k. I didnt sign any loan agreements.
i suppose my question is would the original personal guarantee 2004 still be applicable as the business may again be in serious trouble.
Many thanks
Back in 2004 i signed a personal guarantee with my brother for his business for a £60k loan, and offered up an endowment policy for security worth £30k. I believed that the endowment was for my part of the guarantee
In the loan agreement all of the securities and guarantees were listed as you would expect however was only signed by him the director (him).
In 2007 i requested release of the endowment as the business was performing relatively well of which the bank duly did release this to me and thereofre believed that my liability was removed.
In 2008 he refinanced the business paying off the remainder of the excisting loan and taking another one for £38k, within this loan agreement in the excisting security schedule my name has been struck through, and therefore believed that there was therefore no further liabilty for me as the endowment had been released and not listed in the new agreement security schedule.
Subsequently a few months ago he raised more money through the bank and noticed looking through the paperwork that my name has now reappeard on this agreement as offering guarantee along with him for the £60k. I didnt sign any loan agreements.
i suppose my question is would the original personal guarantee 2004 still be applicable as the business may again be in serious trouble.
Many thanks
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