Opinion ID: 466154
Heading Depth: 1
Heading Rank: 3

Heading: Defense of Commercial Unreasonableness

Text: 16 Assuming, as we do, that the above sets forth the substantive law to be applied in this case, we consider whether the Urbans waived protections afforded under the New Mexico UCC by executing the SBA guaranty agreement. We believe a review of the provisions of the SBA guaranty agreement will reveal that the Urbans waived the SBA's duties regarding the collateral. 17 First, we note that the Urbans unconditionally guaranteed payment of the note entered into between the SBA and the debtor: In order to induce Small Business Administration (hereinafter called Lender) to make a loan or loans, or renewal or extension thereof, to New Mexico Landscaping, Inc. (hereinafter called the Debtor), the Undersigned hereby unconditionally guarantees to lender ... the due and punctual payment when due ... of the principal of and interest on and all other sums payable, or stated to be payable, with respect to the note of the Debtor.... (R., p. 72.) 18 Second, under the agreement, the Urbans waived several substantive rights as guarantors. 19 The Undersigned waives any notice of the incurring by the Debtor at any time of any of the Liabilities, and waives any and all presentment, demand, protest or notice of dishonor, nonpayment, or other default with respect to any of the Liabilities and any obligation of any party at any time comprised in the collateral. The Undersigned hereby grants to Lender full power, in its uncontrolled discretion and without notice to the Undersigned, but subject to the provisions of any agreement between the Debtor or any other party and Lender at the time in force, to deal in any manner with the Liabilities and the collateral, including, but without limiting the generality of the foregoing, the following powers: 20