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Homepage Private Community Forums Discharging Liabilities (Debt) Holding position for rejection of promissory notes by loan company

  • Holding position for rejection of promissory notes by loan company

    Posted by rtw711 on February 2, 2024 at 7:22 pm

    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.

    rtw711 replied 3 weeks, 5 days ago 1 Member · 0 Replies
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