Cengage Advantage Books: Fundamentals of Business Law Today 10th 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, 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 Laws Assisting Creditors.)