First, there is nothing in the 8k that suggests the loan is guaranteed.
The hypothetical doesn’t make much sense for a variety of reasons. The only time the guaranty would not be called is if the borrower can’t pay, right? So, wouldn’t LP and LG want to be certain that’s the results will allow the company to make good on its obligation?
And depending on the terms of the hypothetical guaranty and what was disclosed to the lender, they still could be exposed to bank fraud for material non disclosures.
When LP has made loans, she’s alway been well compensated and I would say fairly certain she wasn’t taking much risk. That would be true with the hypothetical guaranty.
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