Mr. and Mrs. Marshall went to Beneficial Finance to borrow money but were deemed by Beneficial’s office manager, Puckett, to be bad credit risks. The Marshalls stated that their friend Garren would be willing to cosign a note for them if necessary. Puckett advised Garren not to cosign because the Marshalls were bad credit risks. This did not dissuade Garren from cosigning a note for $480, but it prompted him to ask Beneficial to take a lien or security interest in Mr. Marshall’s custom-built Harley-Davidson motorcycle, then worth over $1,000. Beneficial took and perfected a security interest in the motorcycle. Marshall defaulted on the first payment. Beneficial gave notice of the default to Garren and advised him that it was looking to him for payment. 

Garren then discovered that Beneficial and Marshall had reached an agreement whereby Marshall would sell his motorcycle for $700; he was to receive $345 immediately, which was to be applied to the loan, and he promised to pay the balance of the loan from his pocket. Marshall paid Beneficial $89.50 and left town without giving the proceeds of the sale to Beneficial. Because Beneficial was unable to get the proceeds from Marshall, it brought suit against Garren on his obligation as surety. When Beneficial released the security for the loan (the motorcycle) without Garren’s consent, was Garren relieved of his obligation as surety for repayment of the loan?