• Unenforceable Guarantees: Lenders Take Note!
  • November 8, 2012 | Authors: Jenna Grant; Stephen J. Redican
  • Law Firm: Borden Ladner Gervais LLP - Toronto Office
  • A recent Ontario Superior Court decision in Royal Bank of Canada v. Samson Management & Solutions Ltd. addresses the enforceability of guarantees and drives home the lesson that when increasing the amount or changing conditions under a loan agreement, the lender (a) should not terminate the old loan agreement and replace it with a new one and (b) should always have a new guarantee provided or the old guarantee confirmed.