Law of Accountants

29-4. 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 Wis- consin state court, the bank sought payment of $536,739.40, plus interest at the contract rate of 7.5 percent, from Mar- tinez. 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 pro- ceeds 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 Suretyship and Guaranty.) ..ish Camnle