Hi Gautam,

the best thing to do in your case is to contact a lawyer. Such clauses can have 
different meanings and effects in different countries. 

In a lot of countries it also depends on the type of business you have 
registered. Even if they have such a clause, but you registered a business 
where you take no personal liability, they cannot demand the money / assets.

Once again: the best thing you should do in this situation is to contact your 
lawyer. Even if you have a relatively new company with much less income it is 
worth to have a lawyer who can give you advice.

Best,

Rafael
*currently free for a dev job*


On 05.08.2010, at 20:46, Gautam Godse <[email protected]> wrote:

> hi all,
> 
> I am trying to setup a merchant account for online CC transactions for my new 
> startup (www.gingercube.com). The product will be a monthly subscription 
> based service.
> 
> We are a new company with less than couple of months of existence and 
> financial history.
> 
> So when we applied for a merchant account with ChasePaymentech (using 
> Spreedly.com as our front end biller) their application form has a Personal 
> Guaranty clause that essential states that if the corp (gingerCube Inc) goes 
> under, then the merchant can come after our personal assets for any 
> outstanding payments that they are owed.
> 
> Is this a standard clause ? Do most merchants require this ? 
> 
> And is there a better alternative for what we are trying to achieve ?
> 
> Thanks for your help!
> ---
> Gautam Godse
> MacMessiah.com
> 
> 
> 
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