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Petitioner also granted Huntington a second mortgage in his
personal residence as security for his obligations under the
Miller/Huntington Loan.
As with the MMS/Huntington Loan, the Rapp Group members
provided limited guaranties with respect to the Miller/Huntington
Loan that in the aggregate covered its $1 million principal,
collateralized with the same Danek stock, which at the time had a
value exceeding $2,500,000. In their respective guaranty
agreements, each member of the Rapp Group also waived any rights
of indemnification, subrogation, reimbursement, or contribution
from petitioner with respect to the Miller/Huntington Loan (the
guarantor waivers).7
7 Specifically, the guaranty agreement executed by each Rapp
Group member provided as follows:
In order to induce the Bank [Huntington] to lend money
or advance credit to, renew, extend or forbear from
demanding immediate payment of the Obligations of
Debtor [petitioner], in reliance, in part, upon this
Guaranty, GUARANTOR HEREBY WAIVES * * * ANY RIGHT OF
INDEMNITY, REIMBURSEMENT OR CONTRIBUTION FROM THE
DEBTOR * * * and the Guarantor further waives any right
of subrogation to the rights of the Bank against the
Debtor * * * which would otherwise arise by virtue of
any payment made by the Guarantor to the Bank on
account of this Guaranty, * * * and the Guarantor
undertakes on behalf of himself, his legal
representatives and assigns that neither the Guarantor
nor the Guarantor's legal representatives or assigns
will attempt to exercise of [sic] accept the benefits
of any such right and should the Guarantor * * *
receive any payment * * * on account of such right
notwithstanding the provisions of this paragraph, such
money * * * shall be held in trust by the recipient for
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