CHAPTER 5 - THE EFFECTS OF SURETYSHIP AMONG SEVERAL SURETIES
Art. 3055. Co-sureties are those who are sureties for the same obligation of the same obligor. They are presumed to share the burden of the principal obligation in proportion to their number unless the parties agreed otherwise or contemplated that he who bound himself first would bear the entire burden of the obligation regardless of others who thereafter bind themselves independently of and in reliance upon the obligation of the former. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3056. A surety who pays the creditor may proceed directly or by way of subrogation to recover from his co-sureties the share of the principal obligation each is to bear. If a co-surety becomes insolvent, his share is to be borne by those who would have borne it in his absence. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3057. A surety who pays the creditor more than his share may recover the excess from his co-sureties in proportion to the amount of the obligation each is to bear as to him. If a surety obtains the conventional discharge of other co-sureties by paying the creditor, any reduction in the amount owed by those released benefits them proportionately. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
CHAPTER 6 - TERMINATION OR EXTINCTION OF SURETYSHIP
Art. 3058. The obligations of a surety are extinguished by the different manners in which conventional obligations are extinguished, subject to the following modifications. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3059. The extinction of the principal obligation extinguishes the suretyship. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3060. Prescription of the principal obligation extinguishes the obligation of the surety. A surety's action for contribution from his co-sureties and his action for reimbursement from the principal obligor prescribe in ten years.
The interruption of prescription against a surety is effective against the principal obligor and other sureties only when such parties have mutually agreed to be bound together with the surety against whom prescription was interrupted. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3061. A surety may terminate the suretyship by notice to the creditor. The termination does not affect the surety's liability for obligations incurred by the principal obligor, or obligations the creditor is bound to permit the principal obligor to incur at the time the notice is received, nor may it prejudice the creditor or principal obligor who has changed his position in reliance on the suretyship.
Knowledge of the death of a surety has the same effect on a creditor as would a notice of termination received from the surety. A termination resulting from notice of the surety's death does not affect a universal successor of the surety who thereafter unequivocally confirms his willingness to continue to be bound thereby. The confirmation need not be in writing to be enforceable. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3062. The modification or amendment of the principal obligation, or the impairment of real security held for it, by the creditor, in any material manner and without the consent of the surety, has the following effects.
An ordinary suretyship is extinguished.
A commercial suretyship is extinguished to the extent the surety is prejudiced by the action of the creditor, unless the principal obligation is one other than for the payment of money, and the surety should have contemplated that the creditor might take such action in the ordinary course of performance of the obligation. The creditor has the burden of proving that the surety has not been prejudiced or that the extent of the prejudice is less than the full amount of the surety's obligation. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
CHAPTER 7 - LEGAL SURETYSHIP
Art. 3063. The provisions governing commercial suretyship contained in this Title apply to legal suretyship except as otherwise provided in this Chapter. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3064. The provisions of this Chapter apply to the extent they are not contrary to special laws governing particular kinds of legal suretyship. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3065. Legal suretyship may be given only by a person authorized to conduct a surety business in Louisiana or by a natural person domiciled in this state who owns property in this state that is subject to seizure and is of sufficient value to satisfy the obligation of the surety.
The qualification of a natural person to act as legal surety must be evidenced by his affidavit and the affidavit of the principal obligor.
A legal surety may not raise his lack of qualification as a defense to an action on his contract. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3066. A legal suretyship is deemed to conform to the requirements of the law or order pursuant to which it is given, except as provided by Article 3067. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3067. A surety is not liable for a sum in excess of that expressly stated in his contract. A legal suretyship may contain terms more favorable to the creditor than those required by the law or order pursuant to which it is given, but it may not provide for a time longer than is provided by law for bringing an action against the surety. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3068. Legal suretyship may be given whenever the law requires or permits a person to give security for an obligation. The principal obligor may in lieu of legal suretyship deposit a sum equal to the amount for which he is to furnish security to be held in pledge as security for his obligation. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3069. No judgment shall be rendered against a legal surety unless the creditor obtains judgment against the principal obligor fixing the amount of the latter's liability to the creditor or unless the amount of that liability has otherwise been fixed. The creditor may join the surety and principal obligor in the same action. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]
Art. 3070. If a legal surety ceases to possess required qualifications or becomes insolvent or bankrupt, any interested person may demand that the principal obligor furnish additional security in the same amount and upon the same terms as those given by the existing surety for the performance of the obligation. [Acts 1987, No. 409, §1, eff. Jan. 1, 1988]