Gebrueder Heidemann, KG v. AMR Corp.

BURNETT, Judge.

This is the second appeal in an action by a bank to foreclose on property mortgaged to secure a guarantor’s obligation. Both parties have raised multiple issues. However, our decision requires us to address only two questions: (1) Was the guarantor discharged from its obligation? (2) Did the district court err in crediting payments made by the principal debtor against the guaranteed portion of the debt? The district court determined that the guarantor had been largely relieved of its obligation. The court also applied partial payments received from the debtor to the remaining…