Case ID: ohio-law-abs_5/html/0686-03.html
Source: Caselaw Access Project
Author: {"author": "MARSHALL, CJ.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

No. 756
    MADISON NAT. BANK OF LONDON, OHIO, v. WEBER, Exrx. et.
    587. GUARANTY — Where payment of money and a limited credit thereafter to be extended are guaranteed and the creditor exceeds the limit, and the debtor becomes insolvent, a dividend paid upon the entire claim in the administration of the estate, should be applied pro rata upon the guaranteed and un-guaranteed portions thereof.
    Error to Madison Co. Appeals.
    Judgment affirmed.
   MARSHALL, CJ.

Where a guarantor in writing guarantees the payment of money and credit thereafter to be extended, which guaranty is a continuing guaranty and by its terms limits the credit to be extended to a fixed sum and the creditor extends credit in excess of the amount stated in the contract of guaranty, and the debtor becomes insolvent and in course of admistration of his estate by the court a dividend is paid upon the entire claim of the creditor, the dividend so paid should be applied pro rata upon the secured and unsecured portions thereof.

(Day, Allen, Kinkade, Robinson and Matthias, JJ., concur. Jones, J., not participating.)