Daddy Warbucks guaranteed Little Orphan Annie's debt to America Savings Bank. The guaranty stated that the bank was not required to seek payment of the debt from any other source before enforcing the guaranty. Annie defaulted. Through a Tennessee state court, the bank sought payment of $536,739.40, plus interest at the contract rate of 7.5 percent, from Warbucks. Warbucks argued that the bank could not enforce his guaranty while other funds were available to satisfy Annie'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? Explain thoroughly.

Guaranty*