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‘Clear and unambiguous’ guarantee survives loan changes

Tuesday, December 19, 2017 @ 8:57 AM | By Ray Mikkola

A common concern for lawyers and clients when dealing with guarantees is the effect on the enforceability of the guarantee of a change in the underlying loan obligations without the consent, or even the knowledge, of the guarantor. Most guarantees contain provisions confirming that the guarantor continues to be liable under the guarantee even if there are changes to the underlying loan terms. A recent British Columbia case sheds some light on the enforceability of such provisions.

In Royal Bank of Canada v. Zuk, released Nov....