Opinion
December 17, 1990
Appeal from the Supreme Court, Westchester County (Nastasi, J.).
Ordered that the order is affirmed insofar as appealed from, with costs.
The defendant met its burden of demonstrating its entitlement to partial summary judgment against the appellant and the appellant offered no evidence in admissible form to show that there were factual issues requiring a trial (see, Mallad Constr. Corp. v. County Fed. Sav. Loan Assn., 32 N.Y.2d 285, 290; Stanita Realty Corp. v. Hughes Aircraft Co., 116 A.D.2d 567). The personal guarantee executed by the appellant was unambiguous and unconditional and thus his liability as guarantor was not discharged by the defendant's unilateral act of ceasing loan advances (see, 63 N.Y. Jur.2d, Guaranty and Suretyship, §§ 207, 356).
Furthermore, the appellant's claim that the defendant's unauthorized and improper transfer of collateral proceeds to a third party requires a discharge of his liability as a guarantor, is without merit (see, Howe Sewing Mach. Co. v. Farrington, 82 N.Y. 121; Schroeppell v. Shaw, 3 N.Y. 446). The proper remedy for an improper disposition of collateral proceeds is to "lessen" the amount of liability, not to discharge it (see, UCC 9-507; Paco Corp. v. Vigliarola, 611 F. Supp. 923, 924, affd. 835 F.2d 1429). Thompson, J.P., Lawrence, Kunzeman and Rosenblatt, JJ., concur.