The trial court granted security summary judgment and the, Operation Management

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The trial court granted security summary judgment and the

Tri-County Truck & Diesel borrowed $160,000 from Security and pledged its inventory. Fred and Randelle Burk agreed to be sureties. Tri-County defaulted and the damaged inventory brought only $5,257.50 at an auction. The inventory was damaged in Security’s hands. The Burks raised the damage as a defense. The trial court granted Security summary judgment and the Burks appealed. ISSUE: (1) Is damage to collateral a defense? (2) What defenses are available to sureties?

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