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Personal Guarantee – Contract

By: Derek Hawkins//April 4, 2017//

Personal Guarantee – Contract

By: Derek Hawkins//April 4, 2017//

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7th Circuit Court of Appeals

Case Name: 1st Source Bank v. Joaquim Salles Leite Neto

Case No.: 17-1058

Officials: e POSNER, KANNE, and WILLIAMS, Circuit Judges.

Focus: Personal Guarantee – Contract

Defendant Joaquim Neto, an international businessman from Brazil, entered into a trust agreement with Wells Fargo Bank in 2009 to purchase an aircraft for use in his business. Wells Fargo borrowed $6 mil‐ lion from plaintiff 1st Source Bank (a major Indiana bank), pledging the aircraft as collateral, and Neto signed a personal guarantee backing the loan. Three years later the Brazilian tax authorities seized the plane as part of an investigation into Neto’s attempt to avoid paying Brazilian import tax. Neto continued to pay the amount due on the loan until December 2014, but after he stopped paying, 1st Source sued him in a federal district court in Indiana, basing jurisdiction on diversity of citizenship. 1st Source filed a second lawsuit in July 2016 in Brazil, where the plane resides

Motion for Injunction Denied

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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