{"id":5826,"date":"2016-01-25T10:00:42","date_gmt":"2016-01-25T16:00:42","guid":{"rendered":"http:\/\/injury.robertkreisman.com\/?p=5826"},"modified":"2019-10-28T10:35:15","modified_gmt":"2019-10-28T10:35:15","slug":"guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations","status":"publish","type":"post","link":"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/","title":{"rendered":"Guarantor\u2019s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations"},"content":{"rendered":"<p>Generally the law in Illinois states that a <a href=\"https:\/\/en.wikipedia.org\/wiki\/Surety\">guarantor<\/a> is entitled to assert the same defenses that would be available to the principal obligor. W.W. Merck White Lead Co. v. McGahey, 159 Ill.App. 418 (1st Dist. 1911).<\/p>\n<p>\u201cUnder Illinois law, \u2018the liability of a guarantor is limited by and is no greater than that of the principal debtor and . . . if no recovery could be had against the principal debtor, the guarantor would also be absolved of liability.\u2019 \u2018Although the language of a guaranty agreement ultimately determines a specific guarantor\u2019s liability, the general rule is that discharge, satisfaction or extinction of the principal obligation also ends the liability of the guarantor.\u2019\u201d Riley Acquisitions v. Drexler, 408 Ill.App.3d 392, 402 (1st Dist. 2011), quoting Edens Plaza Bank v. Demos, 277 Ill.App.3d 207, 209 (1st Dist. 1995).<\/p>\n<p>In the Riley case, the guarantors were two joint obligations to the bank. The bank released one of the obligors. The other obligor was a dissolved corporation. Under the applicable state law, the five-year post-dissolution time period for collecting against the dissolved corporation had expired.<\/p>\n<p> <a href=\"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/#more-5826\" class=\"more-link\">Continue reading<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Generally the law in Illinois states that a guarantor is entitled to assert the same defenses that would be available to the principal obligor. W.W. Merck White Lead Co. v. McGahey, 159 Ill.App. 418 (1st Dist. 1911). \u201cUnder Illinois law, \u2018the liability of a guarantor is limited by and is no greater than that of [&hellip;]<\/p>\n","protected":false},"author":795,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[41,49,134],"tags":[],"class_list":["post-5826","post","type-post","status-publish","format-standard","hentry","category-breach-of-contract","category-business-litigation","category-commercial-litigation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Guarantor\u2019s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations &#8212; Chicago Injury Lawyer Blog<\/title>\n<meta name=\"description\" content=\"Generally the law in Illinois states that a guarantor is entitled to assert the same defenses that would be available to the principal obligor. W.W. Merck\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Guarantor\u2019s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations &#8212; Chicago Injury Lawyer Blog\" \/>\n<meta name=\"twitter:description\" content=\"Generally the law in Illinois states that a guarantor is entitled to assert the same defenses that would be available to the principal obligor. W.W. Merck\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robert Kreisman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Guarantor\u2019s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations &#8212; Chicago Injury Lawyer Blog","description":"Generally the law in Illinois states that a guarantor is entitled to assert the same defenses that would be available to the principal obligor. W.W. Merck","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/","twitter_card":"summary_large_image","twitter_title":"Guarantor\u2019s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations &#8212; Chicago Injury Lawyer Blog","twitter_description":"Generally the law in Illinois states that a guarantor is entitled to assert the same defenses that would be available to the principal obligor. W.W. Merck","twitter_misc":{"Written by":"Robert Kreisman","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/#article","isPartOf":{"@id":"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/"},"author":{"name":"Robert Kreisman","@id":"https:\/\/www.robertkreisman.com\/injury-lawyer\/#\/schema\/person\/5e5596abf7be77fdabc788f0a78f042b"},"headline":"Guarantor\u2019s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations","datePublished":"2016-01-25T16:00:42+00:00","dateModified":"2019-10-28T10:35:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/"},"wordCount":633,"articleSection":["Breach of Contract","Business Litigation","Commercial Litigation"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/","url":"https:\/\/www.robertkreisman.com\/injury-lawyer\/guarantors-obligations-discharged-principal-obligor-released-running-statute-limitations\/","name":"Guarantor\u2019s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations &#8212; Chicago Injury Lawyer Blog","isPartOf":{"@id":"https:\/\/www.robertkreisman.com\/injury-lawyer\/#website"},"datePublished":"2016-01-25T16:00:42+00:00","dateModified":"2019-10-28T10:35:15+00:00","author":{"@id":"https:\/\/www.robertkreisman.com\/injury-lawyer\/#\/schema\/person\/5e5596abf7be77fdabc788f0a78f042b"},"description":"Generally the law in Illinois states that a guarantor is entitled to assert the same defenses that would be available to the principal obligor. 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