Article
UPDATED: Guarantors Can Be Discharged in Bankruptcy Only if the Creditor Caused the Default
The Court of Appeal of Ontario found in Toronto-Dominion Bank v. Konga that the interpretation of a guarantee is a question of mixed fact and law, entitled to deference on appeal. Further, for a guarantor to obtain a discharge from the guarantee, he must establish that the bank's demand caused the debtor's default.
Borden Ladner Gervais LLP
