Differences in NY, CA Law Governing Guarantor Obligations

Kimberly Chi published an article in the Daily Journal about potential differences between New York and California law with respect to the effectiveness of a guarantor’s waiver of the unenforceability of the obligations guarantied. In the piece published Feb. 7, 2017, Kim highlights a recent decision by the U.S. Court of Appeals for the Second Circuit holding a guarantor responsible for liquidated damages regardless of whether those damages were enforceable against the primary obligor, and notes that a California court may reach the opposite conclusion.

Ms. Chi’s practice is focused on public and private financing transactions, including advising borrowers and lenders on establishing credit facilities and issuers and investors with respect to a variety of debt and preferred equity instruments.