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Contracts Keyed to Kuney
Frishman v. Canadian Imperial Bank of Commerce
Facts
Canadian Imperial Bank of Commerce (the bank) (plaintiff) negotiated a loan to Abel Construction Co., Ltd. (Abel). The terms of the advance agreement enabled the bank to call the credit at the bank's discretion. As security for the credit, the bank requested individual assurances from Abel's four shareholders. Three of the four shareholders gave a guarantee, and the bank gave the credit. A few days after the fact, Bernard Frishman (defendant), the shareholder who had not yet given an assurance, at long last gave his certification to the bank. The bank later called the loan, and Abel petitioned for bankruptcy. The bank at that point requested the exceptional measure of the advance from Frishman, considering his certification. At the point when Frishman declined to pay, the bank sued him. The district court entered judgment to support Frishman on the original amount of the loan, but entered judgment in favor of the bank for an overdraft that Abel had drawn from the bank. Both parties appealed.
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