CC 3042 - Commercial suretyship

Art. 3042. Commercial suretyship

A commercial suretyship is one in which:

(1) The surety is engaged in a surety business;

(2) The principal obligor or the surety is a business corporation, partnership, or other business entity;

(3) The principal obligation arises out of a commercial transaction of the principal obligor; or

(4) The suretyship arises out of a commercial transaction of the surety.

Acts 1987, No. 409, §1, eff. Jan. 1, 1988.