Defendant's testator guaranteed the payment in full of a mortgage note for $8,000 "until such time as the sum of sixteen hundred (1600) dollars has been paid on the principal of said note." Upon default before the sum of $1,600 had been paid, the balance came due and the plaintiff foreclosed the mortgage, crediting the proceeds, which exceeded the sum of $1,600, on the note. Held, crediting the proceeds of foreclosure on the note did not, as the defendant contended, discharge the obligation of the guarantor, but merely amounted to a payment pro tanto for the benefit of both the maker of the note and the guarantor. Security Co-Op. Bank v. Corcoran, (Mass. 1937) 10 N. E. (2d) 57.
Charles R. Linton,
PRINCIPAL AND SURETY - CONSTRUCTION OF GUARANTY,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol36/iss8/23