Opinion ID: 2981321
Heading Depth: 2
Heading Rank: 2

Heading: The Guaranty Agreements

Text: Also part of the contracts between the parties were Guaranty Agreements executed for each of the six low-income housing units. The agreements were identical except in the name of the property implicated. Each one guaranteed certain obligations of the General Partner under “the Agreement,” where “the Agreement” was defined as the “Amended and Restated Agreement of Limited Partnership dated as of December 8, 2003.” The parties do not dispute that “the Agreement” referred to was the relevant LP Agreement for each property. The Guaranty Agreements guaranteed the due, prompt, and complete performance of the General Partners’ obligations, including the obligation of each to pay Development Deficits or 3 “Interest Rate” was defined as “a rate per annum (compounded annually on December 31 of each calendar year) equal to two percent (2%) over the Prime Rate, but in no event more than the maximum rate of interest permitted by law.” -4- No. 10-5454 Alliant Tax Credit Fund 31-A, Ltd., et al. v. Murphy rescission damages. They also guaranteed the General Partners’ obligation to cause Rental Achievement. The Guaranty Agreements cross-referenced the LP Agreements extensively, providing, for example: 1. Each Guarantor irrevocably and unconditionally fully guarantees the due, prompt and complete performance of each and every one of the following obligations under the following provisions of the [LP] Agreement: (i)the obligation to effectuate Completion . . . in accordance with the section 5.9A; (ii) the obligations under Section 7.4 in the event of a rescission pursuant to Section 7.4(a)(ii); (iii) the obligation to pay all Development Deficits under Section 5.9B; ... (vi) the obligation to cause Rental Achievement in accordance with the requirements of Section 5.9D . . . .