Louisiana Notary

A Civil Law Tradition

Security and Pledge

Security and Pledge – Perfection of a security interest

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Security and Pledge – Perfection of a security interest

R.S. 10:9-102(39)(39) “Financing statement” means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement.

R.S. 10:9-502. Contents of financing statement; time of filing financing statement:

(a) Sufficiency of financing statement. Subject to Subsection (b), a financing statement is sufficient only if it:

(1) provides the name of the debtor;

(2) provides the name of the secured party or a representative of the secured party; and

3) indicates the collateral covered by the financing statement.

(b) Real-property-related financing statements, To be sufficient, a financing statement that covers as-extracted collateral or standing timber that constitutes goods, or that is filed as a fixture filing and covers goods that are to become fixtures, must satisfy Subsection (a) and also:

(1) indicate that it covers this type of collateral;

(2) [Reserved.]

(3) provide a description of the real property to which the collateral is related sufficient to cause the mortgage to be effective against third persons if the description were contained in a mortgage of real property filed for registry; and

(4) if the debtor does not have an interest of record in the real property, provide the name of a record owner.

(c) [Reserved.]

(d) Filing before security agreement or attachment. A financing statement may be filed before a security agreement is made or a security interest otherwise attaches.

R.S. 10:9-504. Indication of collateral. A financing statement sufficiently indicates the collateral that it covers if the financing statement provides:

(1) a description of the collateral pursuant to R.S. 10:9-108;

(2) an indication that the financing statement covers all assets or all personal property; or

(3) the year of manufacture, make, model, body style, and manufacturer’s serial or other identification number, in the case of a titled motor vehicle not held as inventory for sale or lease.

(4) the hull identification number, vessel length, model year or year built, name of manufacturer or model, vessel type, propulsion type, and principal material of hull construction in the case of a titled vessel not held as inventory for sale or lease.

(5) Serial number, year manufactured, name of manufacturer or model, in the case of a titled outboard motor not held as inventory for sale or lease.

§9-108. Sufficiency of description

(a) Sufficiency of description. Except as otherwise provided in Subsections (c), (d), and (e), a description of personal property is sufficient, whether or not it is specific, if it reasonably identifies what is described.

(b) Examples of reasonable identification. Except as otherwise provided in Subsection (d), a description of collateral reasonably identifies the collateral if it identifies the collateral by:

(1) specific listing;

(2) category

(3) except as otherwise provided in Subsection (e), a type of collateral defined in this Title;

(4) quantity;

(5) computational or allocational formula or procedure; or

(6) except as otherwise provided in Subsection (c), any other method, if the identity of the collateral is objectively determinable.(c) Supergeneric description not sufficient. A description of collateral as “all the debtor’s assets” or “all the debtor’s personal property” or using words of similar import does not reasonably identify the collateral.

(d) Investment property. Except as otherwise provided in Subsection (e), a description of a security entitlement, securities account, or commodity account is sufficient if it describes:

(1) the collateral by those terms or as investment property; or

(2) the underlying financial asset or commodity contract.

(e) When description by type insufficient. A description only by type of collateral defined in this Title is an insufficient description of:

(1) a tort claim other than as a form of proceeds under RS. 10:9-315;

(2) in a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account;

(3) a life insurance policy;

(4) a judgment, other than as a form of proceeds under R.S. 10:9-315;

(5) a beneficial interest in a trust;

(6) an interest in an estate; or

(7) a collateral mortgage note.

Security and Pledge – Security interest

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Security and Pledge – Security interest

R.S. 10:1-201(35). (35) “Security interest” means an interest in personal property or fixtures, created by contract, which secures payment or performance of an obligation. “Security interest” includes any interest of a consignor and a buyer of.accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Chapter 9. The right of a seller or lessor of goods to retain or acquire possession of the goods is not a “security interest,” but a seller or lessor may also acquire a “security interest” by complying with Chapter 9. The retention or reservation of title by a seller of goods notwithstanding perfection of the sale is limited in effect to a reservation of a “security interest.” A lien or privilege created by operation of law is not a “security interest.” Whether a transaction in the form of a lease creates a “security interest” is determined pursuant to R.S. 10:1-203.

Art. 3136. Security defined. Security is an accessory right established by legislation or contract over property, or an obligation undertaken by a person other than the principal obligor, to secure performance of an obligation. It is accessory to the obligation it secures and is transferred with the obligation without a special provision to that effect.

Security and Pledge – What UCC 9 Covers

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Security and Pledge – What UCC 9 Covers

R.S. 10:9-109(a) General scope of Chapter. Except as otherwise provided in Subsections (c) and (d), this Chapter applies to:

(1) a transaction, regardless of its form, that creates by contract a security interest in any type of personal property, standing timber that constitutes goods, or fixtures, but as to fixtures only if the security interest has been perfected by a fixture filing when the goods become fixtures;

2) an agricultural lien;

(3) a sale of accounts, chattel paper, payment intangibles, or promissory notes;

(4) a consignment; and

(5) [Reserved.]

(6) a security interest arising under R.S. 10:4-210 or 5-118.

Security and Pledge – Effect between the parties and upon third parties for pledges affecting immovables

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Security and Pledge – Effect between the parties and upon third parties for pledges affecting immovables

Art. 3346. Place of recordation; duty of the recorder. A. An instrument creating, establishing, or relating to a mortgage or privilege over an immovable, or the pledge of the lessor’s rights in the lease of an immovable and its rents, is recorded in the mortgage records of the parish in which the immovable is located. All other instruments are recorded in the conveyance records of that parish.

B. The recorder shall maintain in the manner prescribed by law all instruments that are recorded with him.

Art. 3169. Effectiveness against third persons. The pledge of the lessor’s rights in the lease of an immovable and its rents is without effect as to third persons unless the contract establishing the pledge is recorded in the manner prescribed by law. Nevertheless, the pledge is effective as to the lessee from the time that he is given written notice of the pledge, regardless of whether the contract establishing the pledge has been recorded.

Security and Pledge – Variations in the lease of immovable property and its rents

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Security and Pledge – Variations in the lease of immovable property and its rents

Art. 3170. Pledge contained in act of mortgage. A pledge of the lessor’s rights in the lease of an immovable and its rents may be established in an act of mortgage of the immovable. In that event, the pledge is given the effect of recordation for so long as the mortgage is given that effect and is extinguished when the mortgage is extinguished.

Art. 3171. Pledge of all or part of the leases of an immovable. A pledge may be established over all or part of the leases of an immovable, including those not yet in existence, without the necessity of specific description of the leases in the contract establishing the pledge. If the pledge is established over leases not yet in existence, the pledge encumbers future leases as they come into existence. The pledge has effect as to third persons, even with respect to leases not in existence at the time of formation of the contract establishing the pledge, from the time that the contract establishing the pledge is recorded in the manner prescribed. by law.

Art. 3172. Pledge of mineral payments by owner of land or holder of mineral servitude. By express provision in a contract establishing a pledge, the owner of land or holder of a mineral servitude may pledge bonuses, delay rentals, royalties, and shut-in payments arising from mineral leases, as well as other payments that are classified as rent under the Mineral Code. Other kinds of payments owing under a contract relating to minerals are not susceptible of pledge under this Title.

Security and Pledge – Pledge of the lessor’s rights in the lease of an immovable

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Security and Pledge – Pledge of the lessor’s rights in the lease of an immovable

Art. 3168. Requirement of contract. A contract establishing a pledge of the lessor’s rights in the lease of an immovable and its rents must state precisely the nature and situation of the immovable and must state the amount of the secured obligation or the maximum amount of secured obligations that may be outstanding from time to time.

Security and Pledge – Pledge as a security agreement under the Uniform Commercial Code

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Security and Pledge – Pledge as a security agreement under the Uniform Commercial Code

Art. 3143. Pledge of property susceptible to encumbrance by security interest. A contract by which a person purports to pledge a thing that is susceptible of encumbrance by security interest does not create a pledge under this title but may be effective to create a security interest in the thing.

Security and Pledge – Effectiveness against third parties

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Security and Pledge – Effectiveness against third parties

Art. 3153. General requirements for effectiveness of pledge against third persons. A pledge is without effect as to third persons unless it has become effective between the parties and is established by written contract.

Art. 3155. Effectiveness against third persons of the pledge of other obligations. If the thing pledged is another person’s obligation not arising under  the lease of an immovable, the pledge is effective against third persons only from the time  that the obligor has actual knowledge of the pledge or has been given notice of it.

Security and Pledge – Formalities of the contract of pledge

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Security and Pledge – Formalities of the contract of pledge

Art. 3149. Formal requirements of contract of pledge. The pledge of a corporeal movable is effective between the parties only if the thing pledged has been delivered to the pledgee or a third person who has agreed to hold the thing for the benefit of the pledgee. The pledge of other things is effective between the parties only if established by written contract, but delivery is not required.

Art. 3150 Acceptance. A written contract of pledge need not be signed by the pledgee, whose consent is presumed and whose acceptance may be tacit.