United States v. Klebe Tool & Die Co.

The principal issue on this appeal is whether any lack of due diligence of the R. F. C. in proceeding against the principal debtor, or any waiver or release of collateral, had the effect of releasing the Klebes from the guaranty.

The key provisions in the guaranty executed by Mr. and Mrs. Klebe read as follows :

“The undersigned [Carl and Elsie Klebe] hereby grants to Reconstruction Finance Corporation full power, in its uncontrolled discretion ... to deal in any manner with the liabilities and the collateral, including, but without limiting the generality of the foregoing, the following powers: