Reuter Bank loaned Sabean Corporation $500,000 in
writ ing. 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 Sa bean
Corporation be used as collateral for 40% of the loan. The
collateral and sure tyship agreements were put in writing
and signed by all relevant parties. When the $500,000 loan
became due, which of the fol lowing rights does Reuter Bank
have?

I. May demand payment of the full amount immediately from
the sureties when the corporation de faults on the loan.
II. May demand payment of the full amount immediately from
the sureties even if Reuter does not attempt to re cover any
amount from the collateral.
III. May attempt to recover up to $200,000 from the collat eral and
the remainder from the sureties, even if the re mainder is more
than $300,000.
IV. Must fi rst attempt to collect the debt from Sabean Corpo ration
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.