Surety's Excluding an Asset from Guaranty Does not Exclude Proceeds of that Asset's Sale From Reach

Defendant (D) executed a surety agreement in which D excluded his home from the coverage. When borrower defaulted on the loan, Plaintiff (P) sued D and obtained a prejudgment attachment on the proceeds of the sale of D's home. D argued the proceeds should be exempted as homestead. California Court of Appeal affirmed saying, the parties are free to contract, and the surety agreement could have excluded the proceeds of sale of the home from coverage, but did not.

Contributor