Under ordinary circumstances and speaking generally, the business in which a man is engaged at the time of his death must be liquidated by his executors, or, if he is a member of a firm, by the surviving partners, without the expenditure of further moneys. In many cases, this would entail heavy loss.
For this reason, it is very desirable that every borrowing customer should be influenced to provide in his will that his executors be empowered to continue his business after his death until it can be profitably liquidated. Deeds of partnership should also make similar provisions.
The borrowing powers of executors, if they have any, are determined by the will of the testator. Upon the decease of a borrower the conditions of the will should be ascertained, and unless authority is specially
Guarantee Bond And Postponement Of Claim
To the Manager ......................BANK
In Consideration of The Canadian Bank of Commerce agreeing to deal with...................................................herein referred to as "the customer," in the way of its business as a Bank, the undersigned hereby jointly and severally guarantee payment to the Bank of the liabilities which the customer has incurred or is under or may occur or be under to the Bank, whether arising from dealings between the Bank and the customer, or from other dealings by which the Bank may become in any manner whatever a creditor of the customer; (the liability of the undersigned hereunder being limited to the sum of........................dollars with interest from the date of demand for payment of the same).
And the undersigned agrees that the Bank may grant extensions, take and give up securities, accept compositions, grant releases and discharges, and otherwise deal with the customer and with other parties and securities as the Bank may see fit, and may apply all moneys received from the customer or others, or from securities, upon such part of the customer's indebtedness as it may think best, without prejudice to or in any way limiting or lessening the liability of the undersigned under this guarantee.
And this guarantee shall apply to and secure any ultimate balance due to the Bank, but the Bank shall not be bound to exhaust its recourse against the customer or other parties or the securities it may hold before being entitled to payment from the undersigned of the amount hereby guaranteed.
And that this shall be a continuing guarantee, and shall cover all the liabilities which the customer may incur or come under until the undersigned, or the executors and administrators of the undersigned, shall have given the Bank notice in writing to make no further advances on the security of this guarantee.
And it is Agreed that this guarantee shall be good notwithstanding any change or changes in the name of the customer, or any change or changes in the membership of the customer's firm by death or by retirement of one or more of the partners, or by the introduction of one or more other partners.
Any debts or claims against the customer now held, or which may, during the continuance of this guarantee, be held by the undersigned or any of them are for the further security of the Bank, and as between the undersigned and the Bank are hereby postponed to the debts and claims against the customer now held or which during such continuance may be held by the Bank, and until the Bank has received payment in full of its said debts and claims any such debts and claims of the undersigned or any of them shall be collected, enforced or proved subject to and for the purpose of this agreement, and any moneys received by the undersigned or any of them in respect thereof shall be received as trustee for the Bank and shall be paid over to the Bank on account of its said debts and claims.
The Guarantee and Agreement on the part of the undersigned herein contained shall extend to and enure to the benefit of the assigns of the Bank.
Given Under Seal at..................this................day of
................A. D. 191...
Figure 41 248 given thereunder the executors cannot legally borrow or renew any note which may be running.