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Terminating a Guaranty

As a condition for extending open account terms, some creditors require personal guarantees from their corporate customers.  Occasionally, a guarantor will want to revoke or terminate the guaranty.  When this occurs, the creditor must carefully re-evaluate the credit risk.  If the risk proves to be too high, the creditor must reduce or withdrawing the open account terms.  The Guarantee should state that termination notification by the debtor must be made in writing and delivered via certified mail. 

© 2011 by Michael C. Dennis.  All Rights Reserved.