Hills Bank & Trust Co. v. Converse

WIGGINS, Justice.

In this case, we must determine whether a bank can enforce a guaranty against a guarantor (secondary obligor). We must also decide that, if the bank can enforce a guaranty against the secondary obligor, whether the secondary obligor has a right of reimbursement against the borrower (principal obligor) and a right of contribution against a coguarantor (cosurety). All parties filed summary judgment motions to determine the rights and liabilities of each party. The district court found no genuine issues of material fact existed and enforced the bank’s obligation against the…