Cengage Advantage Books: Business Law Today, The Essentials 11th Edition by Roger LeRoy Miller

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Guaranty. Timothy Martinez, owner of Koenig Vits, Inc. (K V), guaranteed K V's debt to Community Bank Trust. The guaranty stated that the bank was not required to seek payment of the debt from any other source before enforcing the guaranty. K V defaulted. Through a Wisconsin state court, the bank sought payment of $536,739.40, plus interest at the contract rate of 7.5 percent, from Martinez. Martinez argued that the bank could not enforce his guaranty while other funds were available to satisfy K V's debt. For example, the debt might be paid out of the proceeds of a sale of corporate assets. Is this an effective defense to a guaranty Why or why not [ Community Bank Trust v. Koenig Vits, Inc., 346 Wis.2d 279 (Wis.App. 2013)] (See Other Laws Assisting Creditors. )