1. If the guaranty agreement had not been in writing, would the agreement have been enforceable? Explain.

2. A guarantor can be required to pay a debt only after the principal debtor defaults. Which party was the principal debtor in this case?

In February 2005, defendant Nam Koo Kim (hereinafter the husband), as sole owner of

Majestic Group Korea, Ltd., entered into a loan agreement on behalf of the company with plaintiff [the Overseas Private Investment Corporation] to borrow $1,500,000 for the purposes of financing a “Ruby Tuesday’s” restaurant in South Korea. The husband and his wife, defendant Hee Sun Kim (hereinafter the wife), issued personal guaranties for the loan. In October 2005, Majestic defaulted on the loan and a restructured loan and assumption agreement was executed by the parties and included a promissory note by the husband to pay plaintiff $1,517,000 in the event of a default.

Once again, the wife agreed to personally guaranty the terms of the note and signed a written commitment to that effect. When the borrowers defaulted on the restructured loan, plaintiff, as was its right under the agreement, accelerated payments of the promissory note and commenced this action seeking recovery of the amount due under the note, together with interest and counsel fees. Plaintiff moved for summary judgment, and [the trial court granted the plaintiff’s motion].