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REPUBLIC NAT'L BANK OF NEW YORK v. GSO INC.

177 A.D.2d 417 (1991)

Republic National Bank of New York, Appellant, v. Gso Inc., Defendant, and Gustave Jacobs, Respondent

Appellate Division of the Supreme Court of the State of New York, First Department.

November 21, 1991

In October 1989, GSO Inc. requested a $400,000 line of credit from plaintiff bank. Since GSO was a new company, the bank required a guarantor. GSO's chairman, David Eisenberg, suggested Gustave Jacobs, a GSO board member, as a suitable candidate. Jacobs met with Mr. Reuben, a bank officer, to discuss the guaranty and provided the bank with copies of his most recent Federal tax return and an accountant-prepared financial statement. According to these documents, Jacobs had...

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