In re Pon

Debtor seeks summary judgment disallowing a $1.7 million claim asserted against her as a guarantor. The principal issue is whether Debtor validly waived the “Gmdsky defense,” under which a lender may not recover from a guarantor any deficiency remaining *323 after a nonjudicial foreclosure on real property securing the principal obligation. I determine that Debtor waived the defense and deny her motion for summary judgment. FACTS

The relevant facts are not disputed. In October 1989, Golden Diamond Investments (GDI) obtained a $3.0 million construction loan from Bank of America (the Bank). The loan was secured by a deed of trust on real property located at 2240 Union Street in San Francisco. Debtor Virginia Pon, a principal of GDI, guaranteed the loan. GDI defaulted on the loan, and the Bank conducted a nonjudicial foreclosure of the Union Street property. The Bank was not paid in full from the proceeds of the foreclosure sale, and now asserts a claim against Debtor as guarantor for $1,716,838.47.

Debtor seeks summary judgment disallowing the Bank’s claim, contending that the Bank may not recover the deficiency from her as guarantor under the doctrine of Union Bank v.…