Reuter Bank loaned Sabean Corporation $500,000 in writing. As part of the agreement, Reuter required that the three owners of Sabean act as sureties on the loan. The corporation also required that some real estate owned by Sabean Corporation be used as collateral for 40% of the loan. The collateral and suretyship agreements were put in writing and signed by all relevant parties. When the $500,000 loan became due, which of the following rights does Reuter Bank have?
I. May demand payment of the full amount immediately from the sureties when the corporation defaults on the loan.
II. May demand payment of the full amount immediately from the sureties even if Reuter does not attempt to recover any amount from the collateral.
III. May attempt to recover up to $200,000 from the collateral and the remainder from the sureties, even if the remainder is more than $300,000.
IV. Must first attempt to collect the debt from Sabean Corporation before it can resort to the sureties or the collateral.
A. I and III only.
B. II only.
C. I, II, and III only.
D. IV only.
C. I, II, and III only.
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