IMO: The personal guarantee is redundant in the event of fraud. If you control a corporation fraud can pierce the corporate veil as well as any protection through personal bankruptcy. Even if you did not directly commit the act but you are in a position to direct or control the actions of the person that committed fraud you can be held personally liable. The personal guarantee just quickly cuts through the red tap.
We didn’t like it but signed the GMAC PG. We didn’t see any additional hidden liability because fraud would have to occur & be proven.
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