United States v. Meadors

The Small Business Administration (SBA) (plaintiff) approved a loan guaranty for M.J.D., Inc. (MJD) on the condition that MJD's three principals and one principal's wife personally guarantee it. At the loan closing, all three principals, their three wives (including Betty Jo Meadors (Betty) (defendant), who had married principal Melton Meadors just weeks earlier), signed the guaranty form even though the SBA had specified only four required signatures (the three principals and one particular wife). No SBA representative was present at the closing. After MJD defaulted, the SBA sued all six signers, including Betty, to collect on the guaranty; Betty argued her signature lacked consideration since it was not requested by the SBA, but the district court granted the SBA summary judgment without resolving whether the SBA actually knew of or relied on her signature.