ECMC concedes one to whatever appeal they acquired out of SunTrust compliment of Suntrust’s assignment throughout the strength out-of financial is bound by the 2005 standard judgment against SunTrust. As an alternative, ECMC contends that it holds a legitimate focus under the Mention in ability because the guarantor, that it acquired by assignment out of PHEAA and you will on replacing within the the initial adversary continuing. Thus, the main matter towards the focus inquiries brand new extent out of PHEAA/ECMC’s leftover need for their “independent and you can type of” capabilities while the guarantor, and you will perhaps the default judgment facing SunTrust discharged you to attention very about extinguish ECMC’s legal rights acquired by project out of PHEAA.
Alfes contends you to definitely within the statutes regarding guarantee, the main matchmaking not as much as a note is the fact involving the debtor and you can bank, and one guarantee legal rights are created in a new contractual relationships within financial therefore the guarantor. For this reason, Alfes claims, PHEAA/ECMC, in its capability because the 3rd-people guarantor, doesn’t have notice within the Mention between Alfes and SunTrust, we.age., PHEAA did not have, and could maybe not designate so you’re able to ECMC, the authority to defend the fresh new Mention. Rather, Alfes argues, ECMC may only insist says to possess compensation, restitution, and you may subrogation, that do not arise in Mention.
