What are the issues raised by the Bank of Montreal under a guarantee?

The third issue raised is that of notice. In Bauer v. Bank of Montreal 1980 CanLII 12 (SCC), [1980] 2 S.C.R. 102, 110 D.L.R. (3d) 424., the guarantor attempted to avoid its obligations under the guarantee on the basis that the bank had failed to preserve its security, in that the bank’s preferred position by an assignment of book debts had failed by an improper registration and became void as against a trustee in bankruptcy. Assigned accounts became available to the general creditors and were therefore of no value to the guarantor in reducing his obligations or recouping his loss under the guarantee. The guarantee had contained an exemption clause allowing the bank wide latitude in dealing with the security taken. It read: It is further agreed that said bank, without exonerating in whole or in part the undersigned, or any of them (if more than one), may grant time, renewals, extensions, indulgences, releases and discharges to, may take securities from and give the same and any or all existing securities up to, may abstain from taking securities from, or from perfecting securities of, ...