In this case, the guarantor unsuccessfully argued that his personal guarantee was limited to the amount authorized within the underlying Commercial Credit Application form: in this case, $100,000.00. The Court held that “the credit limit authorized is unrelated to the scope of the personal guarantee. The personal guarantee portion of the Credit Agreement specifically refers to “all indebtedness.” It does not restrict indebtedness up to the amount of the authorized credit limit. Indeed, it would make little business sense to do so given the potential for interest charges and fees and expenses relating to collection of the debt owing.” In this case, the guarantor had judgment entered against him in the sum of $242,546.99 USD.
The DeLong Co. Inc. v. Great Lakes Milling Company Inc., 2022 ONSC 636
https://www.canlii.org/en/on/onsc/doc/2022/2022onsc636/2022onsc636.html