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Note: UPS Capital Business Credit (Payee) provided a loan to Adams/Park Investment (Maker) for USD 819,000 which could be accelerated if Maker went into default. To assure payment of the note, Maker's owners as private individuals guaranteed the entire note. The guarantee provided "[Maker] unconditionally guarantees payment to [Payee] of all amounts owing under the Note. This Guarantee remains in effect until the Note is paid in full. [Maker] must pay all amounts due under the Note when [Payee] makes written demand upon [Maker]."

When Maker defaulted, Payee accelerated the note, demanding payment from guarantors, who did not pay. Payee sued them for USD 928,237.51, including the full amount, interest, late fees, and enforcement costs.

The United States District Court for the Eastern District of Michigan, Hood, J., granted Payee's motion for summary judgment. The court noted that although Maker did not respond, Payee had met its burden of proof.

[JAH]

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This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.