2021 Georgia Code
Title 10 - Commerce and Trade
Chapter 7 - Suretyship
- Powers of banks to act as sureties and guarantors, § 7-1-290.
Sureties on bonds, § 17-6-30 et seq.
Law reviews.- For article analyzing problems and obligations of parties in personal suretyship, see 5 Mercer L. Rev. 289 (1954). For article discussing Georgia commercial law in 1976 to 1977, see 29 Mercer L. Rev. 41 (1977).
JUDICIAL DECISIONS
Compensated sureties.
- Prior to 1981, this chapter was not intended to govern compensated sureties, which meant that the surety law for compensated sureties had to be found in the common law of this state. Houston Gen. Ins. Co. v. Brock Constr. Co., 241 Ga. 460, 246 S.E.2d 316 (1978) (excluding § 10-7-30, enacted in 1973, from holding and holding § 10-7-22 states common law applicable to compensated sureties).
Corporations writing surety bonds for profit.
- Compensated corporate sureties engaged in writing surety bonds for a profit were, prior to 1981, not such sureties within the meaning of this chapter as to generally enjoy the protection afforded by all of its sections. Brock Constr. Co. v. Houston Gen. Ins. Co., 144 Ga. App. 860, 243 S.E.2d 83, aff'd, 241 Ga. 460, 246 S.E.2d 316 (1978).
Uncompensated sureties.
- Persons who guaranteed payment of a note solely as an accommodation to another and not for any profit flowing to themselves were uncompensated sureties entitled as members of a favored class to the protections of this chapter. Upshaw v. First State Bank, 244 Ga. 433, 260 S.E.2d 483 (1979).
In 1981, distinction between sureties and guarantors was abolished.
- Georgia L. 1981, p. 870 amends O.C.G.A. § 10-7-1 so as to abolish the distinction between sureties and guarantors. Balboa Ins. Co. v. A.J. Kellos Constr. Co., 247 Ga. 393, 276 S.E.2d 599 (1981).
RESEARCH REFERENCESHandling Fidelity Bond Claims, 47 Am. Jur. Trials 411.
