Four surgeons conducted theirmedical practices through an LLC they created and owned. The LLC obtained a $1.5

Question:

Four surgeons conducted theirmedical practices through an LLC they created and owned. The LLC obtained a $1.5 million line of credit from Emprise Bank to fund operations. It was secured by personal guarantees of the four doctors, each in the amount of $200,000, plus an additional joint $375,000. Later, two doctors moved to another practice. Emprise moved to enforce the personal guarantees by the two remaining doctors and won a judgment. The doctors who remained in the LLC contended that they had the right to sue the doctors who left as they injured the LLC. Does Emprise have the right to collect against all four doctors? [Emprise Bank v. Rumisek, 215 P.3d 621, Ct. App., Kan. (2009)]

Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

Question Posted: