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.

Question

Quizplus · Accepted Answer

The bank's seizure and lack of care for the dogs led to a decline in their value, which means that the bank failed to take adequate measures to preserve the value of the assets. This could be seen as a breach of their duty towards Tammy and Heidi, which could limit Heidi's liability under her guarantee.

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