B. Loan authorisation

I. Definition and form

¹ Where a person has received and accepted an order to act as an agent in granting or renewing a loan to a third party in his own name and for his own account but on the authorisation of the principal, the principal is liable for the payee’s obligation in the same manner as a surety, provided that the agent has not exceeded his authority.

² The principal incurs such liability only where the authorisation was given in writing.