First National Bank & Trust Co. v. Kunes

Pannell, Judge,

concurring specially. As I construe the "indemnity agreement” or "guaranty,” signed by Kunes and Garrison, Kunes and Garrison are primarily liable jointly and severally with Coastal Plains Realty Company on the indebtedness involved here, and the trial court was correct in treating them as endorsers under the "indemnity agreement” and, therefore, debtors, who are entitled to notice of the proceedings seeking a judgment *570over and above the amount brought in at the foreclosure sale.

While the agreement signed by Runes and Garrison is denominated an "indemnity agreement” and similarly referred to in the body thereof, as well as referred to as a guaranty, there is express language in the instrument which controls the relationship of the parties. This language states that "the signer, or signors, thereof, shall be jointly and severally liable to said Bank for the indebtedness of the said Coastal Plains Realty Company as endorsers are liable to the holder of a negotiable instrument under the Law Merchant, . . .” (Emphasis supplied.) This language clearly indicates that the signatories of the so-called "indemnity agreement” are not secondarily liable, such as only in the event of a default of the principal debtor, but are primarily liable "as endorsers,” and are, therefore, debtors entitled to notice. They having received no notice, the trial court did not err in finding in their favor as to Count 2 of the petition.