158 Misc. 560 | N.Y. Sup. Ct. | 1935
Motion for summary judgment is granted. The guaranty was not intended to terminate until bona fide leases of the annual face amount of $215,000 had been secured, eighty per cent of which (in amount) were not to expire before May 1, 1931. The bondholders were to have the protection of the guaranty until
The proceedings under section 77B of the Bankruptcy Act (U. S. Code, tit. 11, § 207) did not deprive the plaintiffs of their remedy against the guarantors. The stay of proceedings against the principal debtor is not similar to our moratorium statutes, the terms of which have been construed to apply expressly to guarantors, as well as principals. (Klinke v. Samuels, 264 N. Y. 144.)
The guaranty by its very terms contemplated the acceleration of the due date by the trustee on a contingency which has in fact occurred. It also provided for liability directly to the bondholders in the event of default. Under its provisions there seems to be no defense to this action. Settle order.