Heidi's Sister, Tammy, Started a Dog Breeding Business

Heidi's sister, Tammy, started a dog breeding business. Tammy borrowed $50 000 from Royal Bank that she needed to start the business. The Bank took a security interest in all of Tammy's assets. Heidi guaranteed Tammy's obligations to the Bank. Tammy defaulted on her loan and the bank seized many of her assets, including the dogs. At the time of the seizure, the dogs were worth $100
000. Because the Bank did not take adequate care of them, some of them died, and the total value of the dogs has declined to
$50 000. Because of the Bank's actions, Heidi is no longer fully liable under her guarantee.