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the parties agreed to a repayment schedule. However, the check
was returned as a result of a lien filed on Dutchess' bank
accounts and accounts receivable by Citibank Eastern of Albany.
By June 1975, Dutchess was indebted to Agway in the amount of
$169,661.34. On June 25, 1975, attorneys for Agway requested
each officer of Dutchess to pay the amount due under the line of
credit, which totaled $175,244.97 with interest.
On June 18, 1975, Dutchess filed for Chapter 11 bankruptcy
protection in the U.S. Bankruptcy Court for the Southern District
of New York. In early July 1975, Agway filed a proof of claim in
that proceeding in the amount of $175,244.97. On July 7, 1975,
Agway filed a summons and complaint in the Supreme Court of New
York, Onondaga County, against the Dutchess officers, asking for
payment under the guarantee. On September 3, 1975, judgment was
entered against the officers of Dutchess in favor of Agway in the
amount of $205,522.72, which represented the original amount of
$169,661.34 due under the line of credit, plus interest and
costs.
On August 15, 1975, John Peterson, filed for Chapter 11
bankruptcy protection in the U.S. District Court for the Southern
District of New York. John Peterson died in 1986. Despite
efforts by petitioners and respondent, Woodrow Pereira's
whereabouts were and are unknown. Agway possessed and sold
petitioners' residence to satisfy its September 3, 1975, judgment
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