Residential Industrial Loan Company v. Fred N. Brown and Gloria Brown, Masten H. Loughman

In this diversity case defendants Fred N. Brown and Gloria Brown appeal from a judgment entered against them for indebtedness arising out of their execution, of a guarantee of a note. They admit that they signed the guarantee and the plaintiff is entitled to recover unless they can establish a defense. Defendants raise three such defenses, one of which applies only to Glo ria Brown. Because the note was delivered and to be performed in Virginia, the law of that state is applicable.

The first defense is based on Va. Code Ann. § 8.3-606(l)(b) (1965), which codifies Uniform Commercial Code §…