Can A Guaranty Contained In An Amendment To A Credit Agreement Be Enforceable Under Kentucky’s Guaranty Statute?

The Kentucky Court of Appeals recently held in an unpublished opinion that an amendment to a line of credit agreement that contains a personal guaranty can satisfy Kentucky’s guaranty statute, KRS 371.065. The line of credit agreement and the amendment were delivered to the guarantor at the same time, and the amendment expressly incorporated the terms of the credit agreement. Thus, the Court held that this satisfies the statute because the guaranty is “written on”  the instrument guaranteed. In this case, the agreement and amendment constitute one and the same instrument. Center Line Development, LLC v. PNC Bank, N.A., Case No. 2013-CA-000945-MR, 2015 Ky. App. Unpub. LEXIS 392 (Ky. Ct. App. June 5, 2015).


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s