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National Loan Investors v. First Equities Co.

Appellate Division of the Supreme Court of New York, Second Department
May 17, 1999
261 A.D.2d 518 (N.Y. App. Div. 1999)

Opinion

May 17, 1999

Appeal from the Supreme Court, Westchester County (Rosato, J.).


Ordered that the order is reversed insofar as appealed from, on the law, with costs, the cross motion is granted, the complaint is dismissed insofar as asserted against the appellants, and the action against the remaining defendants is severed.

The record reveals that the loan documents in question clearly and unequivocally preclude any recovery against the appellants. Specifically, the promissory note provided that the borrower would not be personally liable for the debt in the event of a default, and that the lender's sole remedy would be to proceed against the collateral. Similarly, the corporate guaranty was expressly limited to the payment of monthly interest on the loan prior to its maturity date, and to the taxes and insurance on the property that served as collateral. Thus, the borrower, the corporate guarantor, and their successors-in-interest were not liable for either the principal indebtedness or the interest that accrued after the default.

The loan documents provided that they would be governed by Georgia law. In Georgia, as in New York, summary judgment may be granted where, as here, the contract is clear and unambiguous on its face, or where the ambiguity can be resolved without resort to extrinsic evidence ( see, Sim's Crane Serv. v. Reliance Ins. Co., 514 F. Supp. 1033, 1036, affd 667 F.2d 30 [11th Cir. 1982] [construing Ga law]; cf., Hartford Acc. Indem. Co. v. Wesolowski, 33 N.Y.2d 169, 172). Contrary to the plaintiff's contention, there are no genuine issues of material fact, and the appellants' cross motion for summary judgment dismissing the complaint insofar as asserted against them must be granted.

Bracken, J. P., Santucci, McGinity and Feuerstein, JJ., concur.


Summaries of

National Loan Investors v. First Equities Co.

Appellate Division of the Supreme Court of New York, Second Department
May 17, 1999
261 A.D.2d 518 (N.Y. App. Div. 1999)
Case details for

National Loan Investors v. First Equities Co.

Case Details

Full title:NATIONAL LOAN INVESTORS L.P., Respondent, v. FIRST EQUITIES CORP. et al.…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: May 17, 1999

Citations

261 A.D.2d 518 (N.Y. App. Div. 1999)
690 N.Y.S.2d 646

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