Bank of America, N.A. v. Stonehaven Manor, LLC

In this appeal we conclude that the property of a guarantor of a debt—a debt which is secured by the real property of the principal debtor and also that of a joint and several coguarantor—is subject to attachment where the guarantor has contractually waived the benefit of that security.

Accordingly, we shall affirm the trial court’s appealable orders of attachment (Code Civ. Proc., § 904.1, subd. (a)(5)), which reached the same conclusion.

FACTUAL AND PROCEDURAL BACKGROUND

The principal debtor is Beck Properties, Inc. (Borrower), a residential developer, which obtained a $150 million line of credit from plaintiff Bank of America, N.A., and its affiliates (Bank) on June 18, 2007.

Borrower provided deeds of trust on real property to secure this line of credit.

Additionally, Bank entered into a guaranty agreement (Guaranty) on June 18, 2007, with three guarantors for this debt: defendant and appellant Stonehaven Manor, LLC (Stonehaven); defendant and appellant Beck Investments Co., Inc. (BIC); and Linda C. Beck Holding Company, LLC (Holding Company).

Holding Company gave Bank a real property deed of trust as security for the Guaranty. Stonehaven and BIC did not provide…