11.3 Order of Actions.

• Jurisdiction: Arizona

Under the Arizona statutes, a surety may request that an action be first instituted against the principal debtor and the creditor’s failure to do so within 60 days discharges the surety. A.R.S. § 12-1641. The surety’s rights under § 12-1641 are also applicable to guarantors, apparently even in guaranty of payment situations. A.R.S. § 12-1646; United States v. Crain, 589 F.2d 996 (9th Cir. 1979).

However, the guarantor’s rights under § 12-1641 may be waived in the guaranty contract. Crain, 589 F.2d 996...