Pa. Loan Default Case Could Spell Chaos For Guaranty Holders

Law360, Philadelphia (November 29, 2012, 7:09 PM EST) -- Banks and loan guaranty holders could see the door to default claims slam in their faces if Pennsylvania’s highest court rules in favor of a petitioner claiming a four-year statute of limitations applies to such actions instead of the traditionally understood 20-year window, attorneys told Law360 on Thursday.

The Pennsylvania Supreme Court, which heard oral arguments in Osprey Portfolio LLC v. George Izett on Wednesday, could create chaos by ruling that state law defines loan guaranties signed under seal as contracts carrying a four-year statute of...
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