A Civil Law Tradition
Art. 3317. Rights of third possessor. A third possessor who performs the obligation secured by the mortgage is subrogated to the rights of the obligee. In such a case, the mortgage is not extinguished by confusion as to other mortgages, privileges, or charges burdening the mortgaged property when the third possessor acquired the mortgaged property and for which he is not personally bound.
Art. 3315. Third possessor defined. A third possessor is one who acquires mortgaged property and who is not personally bound for the obligation the mortgage secures.
Art. 3279. Rights created by mortgage. Mortgage gives the mortgagee, upon failure of the obligor to perform the obligation that the mortgage secures, the right to cause the property to be seized and sold in the manner provided by law and to have the proceeds applied toward the satisfaction of the obligation in preference to claims of others.
Art. 3338. Instruments creating real rights in immovables; recordation required to affect third persons. The rights and obligations established or created by the following written instruments are without effect as to a third person unless the instrument is registered by recording it in the appropriate mortgage or conveyance records pursuant to the provisions of this Title:
1) An instrument that transfers an immovable or establishes a real right in or over an immovable.
(2) The lease of an immovable.
(3) An option or right of first refusal, or a contract to buy, sell, or lease an immovable or to establish a real right in or over an immovable.
(4) An instrument that modifies, terminates, or transfers the rights create or evidenced by the instruments described in Subparagraphs (1) through (3) of this Article.
Art. 3307. The effect and rank of mortgages. A mortgage has the following effects:
(1) Upon failure of the obligor to perform the obligation secured by the mortgage, the mortgagee may cause the mortgaged property to be seized and sold in the manner provided by law and have the proceeds applied toward the satisfaction of the obligation.
(2) The mortgaged property may not be transferred or encumbered to the prejudice of the mortgage.
(3) The mortgagee is preferred to the unsecured creditors of the mortgagor and to others whose rights become effective after the mortgage becomes effective as to them.
RS.9:5384. Assumption of a mortgage on immovable property by a third person An original vendor’s privilege or first mortgage, or both, is not extinguished nor is its ranking subordinated to any other mortgage, lien, privilege, or encumbrance when the obligation it secures is assumed by a new obligor, notwithstanding the release of the original obligor.
Art. 3286. Property susceptible of mortgage.The only things susceptible of mortgage are:
(1) A corporeal immovable with its component parts.
(2) A usufruct of a corporeal immovable.
(3) A servitude of right of use with the rights that the holder of the servitude may have in the buildings and other constructions on the land.
(4) The lessee’s rights in a lease of an immovable with his rights in the buildings and other constructions on the immovable.
(5) Property made susceptible of conventional mortgage by special law.
RS. 9:5391. Additions, accessions, and natural increases subject to mortgage A mortgage of immovable property without further action attaches to present and future component parts thereof and accessions thereto, without further description and without the necessity of subsequently amending the mortgage agreement.
Art. 3278. Mortgage defined. Mortgage is a nonpossessory right created over property to secure the performance of an obligation.
Art. 3280. Mortgage is an indivisible real right. Mortgage is an indivisible real right that burdens the entirety of the mortgaged property and that follows the property into whatever hands the property may pass.
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.
R.S. 10:9-102 (74). (74) “Security agreement” means an agreement that creates or provides for a 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.
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.
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.
