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Burke v. North Fork Bank & Trust Co.
Citations: 228 A.D.2d 461; 644 N.Y.2d 293; 644 N.Y.S.2d 293; 1996 N.Y. App. Div. LEXIS 6605
Court: Appellate Division of the Supreme Court of the State of New York; June 10, 1996; New York; State Appellate Court
The plaintiff signed a personal guaranty for a $50,000 loan taken by Robert E. Burke, Jr., the third-party defendant, and does not contest the authenticity of her signature. The guaranty was backed by the plaintiff's certificates of deposit held by the defendant. After the third-party defendant defaulted, the defendant offset the outstanding loan balance of $49,743.47 against one of the plaintiff's certificates. The plaintiff argued that the guaranty lacked valid consideration; however, under General Obligations Law § 5-1105, such consideration is valid if documented in writing, which the plaintiff cannot dispute. The timing of the guaranty’s execution, occurring shortly after the loan documents were signed, does not affect its enforceability, as supported by case law (Liberty Natl. Bank v Gross). The plaintiff's claims of fraud regarding her signature are deemed insufficient to create triable issues of fact (European Am. Bank v Syosset Autorama). Additional arguments raised by the plaintiff are not properly before the Court. Judges Bracken, O’Brien, Joy, and Florio concur.