Multiple Personal Guarantees?

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April 26, 2022

by a searcher from Georgetown University - The McDonough School of Business in Golden, CO, USA

Does anyone have experience as a borrower or lender on a pair of deals closed in sequence where a borrower was >20% on both of them and signed personal guarantees? How does the second lender deal with the PG-related liens, etc.?

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commentor profile
Reply by a lender
from University of Missouri in St. Louis, MO, USA
Hi Ben, we did this on a relationship in Atlanta a couple of years ago. The key is the entity where you hold the 2nd company. If you roll it into an entity that currently involved in the first transaction, the First lender's UCC could arguably be applied to the new business. If you did this second transaction as a completely separate entity, then you should be ok. First bank you used is always the cleanest but if you want to go a different route then you should be ok as long as you set the legal entities up correctly.
commentor profile
Reply by a searcher
from Georgetown University in Golden, CO, USA
Thanks Colin!
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