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Holding position for rejection of promissory notes by loan company
My question pertains to the amount payable by a
loan company when it defaults on accepting your Promissory Note (PN) as payment to discharge a
loan and breaches the Default and Liability Clause & Notice of the contract. I understand this amount to be 4 times the value
of the PN (e.g. $200,000) i.e. Defaulter owes 4 x $200,000 = $800,000. But if there are 5 parties named in the Default
and LC & Notice and they are all jointly and severally liable, does this make
the total amount owing equal to:A) $800,000 in total or
B) 5 x $800,000 = $4
Million i.e. each defaulter owes the defaultee $800,000?My understanding from what Mark has said is
that I think the correct answer is A, however, it would be good to clarify this with others. I have Googled the meaning of “jointly
and severally” and examples I have seen suggest the correct answer is A. I did answer this in the Q&A session but my question wasn’t answered. -
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