book3_5 – Louisiana Civil Code

Civil Code

Book III. Of the Different Modes of Acquiring the Ownership of Things

Title XX-A. Pledge

Chapter 1. General Provisions

Art. 3141. Pledge defined

 Pledge is a real right established by contract over property of the kind described in Article 3142 to secure performance of an obligation.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3142. Property susceptible of pledge

The only things that may be pledged are the following:

(1) A movable that is not susceptible of encumbrance by security interest.

(2) The lessor's rights in the lease of an immovable and its rents.

(3) Things made susceptible of pledge by law.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3143. Pledge of property susceptible of 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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3144. Accessory nature of pledge

Pledge is accessory to the obligation that it secures and may be enforced by the pledgee only to the extent that he may enforce the secured obligation.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3145. Preference afforded by pledge

Pledge gives the pledgee the right to be satisfied from the thing pledged and its fruits in preference to unsecured creditors of the pledgor and to other persons whose rights become effective against the pledgee after the pledge has become effective as to them.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3146. Obligations for which pledge may be given

A pledge may be given to secure the performance of any lawful obligation, including obligations that arise in the future. As to all obligations, present and future, secured by the pledge, notwithstanding the nature of the obligations or the date they arise, the pledge has effect between the parties from the time that the requirements for formation of the contract of pledge are satisfied and has effect as to third persons from the time that the applicable requirements of Articles 3153 through 3155 are satisfied.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3147. Pledge securing obligation that is not for the payment of money

 A pledge that secures an obligation other than one for the payment of money, such as an obligation for the performance of an act, secures the claim of the pledgee for the damages he may suffer from the breach of the obligation.

See Acts 2014, No. 281, §1.

Art. 3148. Pledge securing an obligation of another person

A person may pledge his property to secure an obligation of another person. In such a case, the pledgor may assert against the pledgee any defense that the obligor could assert except lack of capacity or discharge in bankruptcy of the obligor. The pledgor may also assert any other defenses available to a surety.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3151. Power to pledge

A contract of pledge may be established only by a person having the power to alienate the thing pledged.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3152. Pledge of a thing not owned

A pledge given over a thing that the pledgor does not own is established when the thing is acquired by the pledgor and the other requirements for the establishment of the pledge have been satisfied.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan, 1, 2015.

Art. 3154. Effectiveness against third persons of the pledge of the lease of an immovable

The pledge of the lessor's rights in the lease of an immovable and its rents has effect against third persons in accordance with the provisions of Chapter 2 of this Title.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3156. Pledgee's right of retention

If the thing pledged has been delivered to the pledgee or a third person for the benefit of the pledgee, the pledgee is not obligated to return it until all secured obligations have been extinguished.

Amended by Acts 1981, No. 315, §1; Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3157. Indivisibility of pledge

The contract of pledge is indivisible, notwithstanding the divisibility of the secured obligations, and the pledgor may not demand return of all or part of the thing pledged until all secured obligations have been extinguished.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3158. Enforcement of pledge of a movable

If agreed in a written contract of pledge of a movable, the pledgee may, upon failure of performance of the secured obligation, dispose of the thing pledged at public auction or by private sale, but he shall act reasonably in disposing of the thing and shall account to the pledgor for any proceeds of the disposition in excess of the amount needed to satisfy the secured obligation. Otherwise, the pledgee may cause the sale of the thing pledged only by having it seized and sold under judicial process.

Amended by Acts 1900, No. 157, §1; Acts 1952, No. 290, §1; Acts 1989, No. 137, §17, eff. June 22, 1989; Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3159. Fruits of things pledged

The pledgee is entitled to receive the fruits of the thing pledged and to retain them as security. He may also apply them to the secured obligation, even if not yet due.

Amended by Acts 1900, No. 157, §2; Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3160. Pledge of obligation of a third person

 If the thing pledged is an obligation of a third person, the pledgee is entitled to enforce performance of the third person's obligation when it becomes due and to retain as security any payment or other thing received from the third person. The pledgee may apply any money collected to the secured obligation, even if not yet due. He must account to the pledgor for any payment or other thing remaining after the secured obligation has been satisfied.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3161. Performance by obligor of a pledged obligation

A third person obligated on a pledged obligation is bound to render performance to the pledgee only from the time that the pledgor or pledgee notifies him of the pledge and directs him in writing to render performance to the pledgee. Performance that the third person renders to the pledgor before that time extinguishes the pledged obligation and is effective against the pledgee.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3162. Defenses available to obligor of a pledged obligation

Unless the obligor of a pledged obligation makes a contrary agreement with the pledgor or pledgee, he may assert against the pledgee any defense arising out of the transaction that gave rise to the pledged obligation. He may also assert against the pledgee any other defense that arises against the pledgor before the obligor has been given written notice of the pledge.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3163. Clause prohibiting pledge

A clause in a contract restricting the pledge of the rights of a party to payments that are or will become due under the contract, making the pledge or its enforcement a default under the contract, or providing that the other party is excused from performance or may terminate the contract on account of the pledge, is without effect.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3164. Modification of contract from which a pledged obligation arises

The parties to a contract from which a pledged obligation arises may agree to modify or terminate the contract or to substitute a new contract. If made in good faith, the agreement is effective against the pledgee without his consent. Nevertheless, after written notice of the pledge is given to the obligor of a pledged obligation that has been fully earned by the pledgor's performance, an agreement modifying or extinguishing the pledged obligation is without effect against the pledgee unless made with his consent.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3165. Attachment of pledge to obligations arising under modified or substituted contract

Upon the modification of a contract from which a pledged obligation arises, or the substitution of a new contract, the pledge encumbers the corresponding rights of the pledgor under the modified or substituted contract.

Amended by Acts 1872, No. 9; Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3166. Modification as default by pledgor

The pledgor and pledgee may agree that a modification or termination of the contract from which a pledged obligation of a third person arises, or the substitution of a new contract, is a default by the pledgor.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3167. Pledgee not bound for pledgor's obligations

In the absence of an assumption by the pledgee, the existence of a pledge does not impose upon the pledgee liability for the pledgor's acts or omissions, nor does it bind the pledgee to perform the pledgor's obligations.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Chapter 2. The Pledge of the Lessor's Rights in the Lease of an Immovable and Its Rents

Art. 3168. Requirements 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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

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.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3173. Accounting to other pledgees for rent collected

Except as provided in this Article, a pledgee is not bound to account to another pledgee for rent collected.

A pledgee shall account to the holder of a superior pledge for rent the pledgee collects more than one month before it is due and for rent he collects with actual knowledge that the payment of rent to him violated written directions given to the lessee to pay rent to the holder of the superior pledge.

After all secured obligations owed to a pledgee have been extinguished, he shall deliver any remaining rent collected to another pledgee who has made written demand upon him for the rent before he delivers it to the pledgor.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3174. Judicial sale prohibited

A pledge of the lessor's rights in the lease of an immovable and its rents does not entitle the pledgee to cause the rights of the lessor to be sold by judicial process. Any clause to the contrary is absolutely null.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Art. 3175. Applicability of general rules of pledge

In all matters for which no special provision is made in this Chapter, the pledge of the lessor's rights in the lease of an immovable and its rents is governed by the provisions of Chapter 1 of this Title.

Acts 2014, No. 281, §1, eff. Jan. 1, 2015.

Title XXI. Of Privileges

Chapter 1. General Provisions

Art. 3185. Privileges established only by law, stricti juris

Privilege can be claimed only for those debts to which it is expressly granted in this Code.

Chapter 2. Of the Several Kinds of Privileges

Art. 3186. Privilege, definition

Privilege is a right, which the nature of a debt gives to a creditor, and which entitles him to be preferred before other creditors, even those who have mortgages.

Art. 3187. Basis of preferences among privileges

Among creditors who are privileged, the preference is settled by the different nature of their privileges.

Art. 3188. Concurrent privileges
Art. 3189. Property affected by privileges

Privileges may exist, either on movables or immovables, or on both at once.

Chapter 3. Of Privileges on Movables

Art. 3190. General or special privileges on movables

Privileges are either general, or special on certain movables.

Section 1. Of General Privileges on Movables

Art. 3191. General privileges on all movables, enumeration and ranking

The debts which are privileged on all the movables in general, are those hereafter enumerated, and are paid in the following order:

1.  Funeral charges.

2.  Law charges.

3.  Charges, of whatever nature, occasioned by the last sickness, concurrently among those to whom they are due.

4.  The wages of servants for the year past, and so much as is due for the current year.

5.  Supplies of provisions made to the debtor or his family, during the last six months, by retail dealers, such as bakers, butchers, grocers; and, during the last year, by keepers of boarding houses and taverns.

6.  The salaries of clerks, secretaries, and other persons of that kind.

Amended by Acts 1979, No. 711, §1.

§ 1. Of Funeral Charges

Art. 3192. Funeral charges, definition

Funeral charges are those which are incurred for the interment of a person deceased.

Art. 3193. Reduction of funeral charges of insolvent decedent

If the property of the deceased is so incumbered as not to suffice for the payment of his creditors, the funeral charges may, upon the request of any of them, be reduced by the judge to a reasonable rate, regard being had to the station in life which the deceased held and which his family holds.

Art. 3194. Limitation in event of reduction

But, in case of the reduction, the judge can never allow, at the* expense of the estate, on any account whatever, more than Five Hundred Dollars for all the* expenses occasioned by the interment of the deceased.

Amended by Acts 1954, No. 114, §1.

*English translation of French text incomplete; should include "funeral."

§ 2. Of Law Charges

Art. 3195. Law charges, definition

Law charges are such as are occasioned by the prosecution of a suit before the courts.  But this name applies more particularly to the costs, which the party cast has to pay to the party gaining the cause.  It is in favor of these only that the laws [law] grants the privilege.

Art. 3196. Costs which enjoy privilege

The creditor enjoys this privilege, not with regard to all the expenses which he is obliged to incur in obtaining judgment against his debtor, but with regard only to such as are taxed according to law, and such as arise from the execution of the judgment.

Art. 3197. Costs for the general benefit of creditors

The cost of affixing seals and making inventories for the better* preservation of the debtor's property, those which occur in cases of failure or cession of property, for the general benefit of creditors, such as fees to lawyers appointed by the court to represent absent creditors, commissions to syndics; and finally, costs incurred for the administration of estates which are either vacant or belonging to absent heirs, enjoy the privileges established in favor of law charges.

*"Better" has no counterpart in French text.

Art. 3198. Costs not taxed in suit

Not only has the creditor no privilege for the costs which are not taxed, or which are not included among those mentioned above, but he has no right to demand them even from the debtor.

§ 3. Of Expenses During the Last Sickness

Art. 3199. Last sickness, definition

The last sickness is considered to be that of which the debtor died; the expenses of this sickness enjoy the privilege.

Art. 3200. Chronic sickness

But if the sickness with which the deceased was attacked and of which he died, was a chronic disease, the progress of which was slow and which only occasioned death after a long while, then the privilege shall only commence from the time when the malady became so serious as to prevent the deceased from attending to his business and confined him to his bed or chamber.

Art. 3201. Maximum period of privileged expenses

However long the sickness may have lasted after arriving at the point which prevented him from attending to his affairs, the privilege granted for the expense it has occasioned, can only extend to one year before the decease.

Art. 3202. List of expenses privileged

The expenses of the last sickness comprehend the fees of physicians and surgeons, the wages of nurses, and the price due to the apothecary for medicines supplied by him to the deceased for his personal use during his last illness.

Art. 3203. Amount due for expenses, fixed by contract or by judge

The accounts relating to these expenses must be fixed by the judge, in case of dispute, after hearing testimony as to the value of the services rendered or care afforded, or as to the true value of the medicines supplied, unless there has been a contract between the parties, in which case it must be observed.

Art. 3204. Last sickness of debtor's children

This privilege subsists, not only for the expenses of the last sickness of the debtor, it subsists also for those of the last sickness of children, under his authority, but it is exercised subject to the rules laid down above.

§ 4. Of the Wages of Servants

Art. 3205. Servants, definition

Servants or domestics are those who receive wages, and stay in the house of the person paying and employing them for his* service or that of his family; such are valets, footmen, cooks, butlers, and others who reside in the house.

*English translation of French text incomplete; should include "personal."

Art. 3206. Prescription of action;  extent of privilege

Domestics or servants must make a demand of their wages within a year from the time when they left service, but their privilege is only for the year past, and so much as is due for the present year.

Art. 3207. Wages recoverable but not privileged

As to the wages of preceding years which may be due, the wages may be recovered, if there is any balanced account, note or obligation of the debtor, but they enjoy no privilege.  They form an ordinary debt, for which domestics or servants come in by contribution with other ordinary creditors.

§ 5. Of Supplies of Provisions

Art. 3208. Supplies furnished by retail dealers

Such supplies of provisions as confer a privilege, are those which are made by retail dealers; that is, persons keeping an open shop, and selling, by small portions, provisions and liquors.

Art. 3209. Prescription of action;  extent of privilege

Retail dealers who have furnished such supplies, ought to demand their money within a year from the time of the first supply; but they have a privilege only for the last six months, and for the rest they are placed on the footing of ordinary creditors.

Art. 3210. Wholesale dealers

Dealers by wholesale in provisions and liquors do not enjoy any privilege on the property of their debtor, further than what they have acquired by mortgage, or by a judgment duly recorded.

Art. 3211. Innkeepers and masters of boarding houses

It is not keepers of taverns and hotels alone, who are comprehended in the term masters of boarding houses, and who enjoy a privilege for their supplies, but all persons who make a business of receiving persons at board for a fixed price.

Art. 3212. Teachers and preceptors

Teachers and preceptors, who receive into their houses young persons to be brought up, fed and instructed, enjoy the same privilege which is given to keepers of boarding houses.

Art. 3213. Extent of privilege for supplies

The privilege of keepers of boarding houses, taverns, and other persons comprised in this class, extends to the last year due, and so much as has expired of the current year.

§ 6. Of the Privilege of Clerks

Art. 3214. Clerks and secretaries, extent and rank of privilege for salaries

Although clerks, secretaries and other agents of that sort can not be included under the denomination of servants, yet a privilege is granted them for their salaries for the last year elapsed, and so much as has elapsed of the current year.  This privilege, however, can not be enforced until after that of the furnishers of provisions.

Section 2. Of the Privileges on Particular Movables

Art. 3216. Special privileges on movables

The privileges enumerated in the preceding section, extend to all the movables of the debtor, without distinction.

There are some which act only on particular movables and no other; and it is of these last that we shall treat in this and the following sections.

Art. 3217. List of special privileges on particular movables

The debts which are privileged on certain movables, are the following:

1.  The appointments or salaries of the overseer for the current year, on the crops of the year and the proceeds thereof; debts due for necessary supplies furnished to any farm or plantation, and debts due for money actually advanced and used for the purchase of necessary supplies and the payment of necessary expenses for any farm or plantation, on the crops of the year and the proceeds thereof.

2.  The debt of a workman or artisan for the price of his labor, on the movable which he has repaired or made, if the thing continues still in his possession.

3.  The rents of immovables and the wages of laborers employed in working the same, on the crops of the year, and on the furniture, which is found in the house let, or on the farm, and on every thing which serves to the working of the farm.

4.  The debt, on the pledge which is in the creditor's possession.

5.  That of a depositor, on the price of the sale of the thing by him deposited.

6.  The debt due for money laid out in preserving the thing.

7.  The price due on movable effects, if they are yet in the possession of the purchaser.

8.  The things which have been furnished by an innkeeper, on the property of the traveler which has been carried to his inn.

9.  The carrier's charges and the accessory expenses, on the thing carried, including necessary charges and expenses paid by carriers; such as taxes, storage and privileged claims required to be paid before moving the thing; and in case the thing carried be lost or destroyed without the fault of the carrier, this privilege for money paid by the carrier shall attach to insurance effected on the thing for the benefit of the owner, provided written notice of the amount so paid by the carrier and for whose account, with a description of the property lost or destroyed, be given to the insurer or his agent within thirty days after the loss, or if it be impracticable to give the notice in that time, it shall be sufficient to give the notice at any time before the money is paid over.  The privilege hereinbefore granted to the overseer, the laborers, the furnishers of supplies and the party advancing money necessary to carry on any farm or plantation, shall be concurrent and shall not be divested by any prior mortgage, whether conventional, legal or judicial, or by any seizure and sale of the land while the crop is on it.

The privileges granted by this article, on the growing crop, in favor of the classes of persons mentioned shall be concurrent, except the privilege in favor of the laborer, which shall be ranked as the first privilege on the crop.

§ 1. Of the Privilege of the Lessor

Art. 3219. Method of enforcement of lessor's privilege

The privilege of the lessor and the manner in which it is enforced against the property subject to it are described in the Title "Lease".

Acts 2004, No. 821, §2, eff. Jan. 1, 2005.

§ 2. Of the Privilege of the Creditor on the Thing Pledged

Art. 3220. Privilege of pledgee

The creditor acquires the right of possessing and retaining the movable which he has received in pledge, as a security for his debt, and may cause it to be sold for the payment of the same.

Hence proceeds the privilege which he enjoys on the thing.

Art. 3221. Enforcement of pledge

For the exercise of this privilege it is necessary that all the requisites stated in the title:  Of Pledge, should be fulfilled.

§ 3. Of the Privilege of A Depositor

Art. 3222. Privilege of depositor on thing deposited

He who deposits a thing in the hands of another still remains the owner of it.

Consequently his claim to it is preferred to that of the other creditors of the depositary, and he may demand the restitution of it,* if he can prove the deposit, in the same manner as is required in agreements for sums of money, and if the thing reclaimed be identically the same which he deposited.

*English translation of French text incomplete; should include "in kind."

Art. 3223. Depositor's privilege on price in case of sale

If the depositary abuses his trust, by alienating the thing confided to his care, or if his heirs sell it, not knowing that it had been given in deposit, the depositor retains his privilege on the price which shall be due.

§ 4. Of Expenses Incurred for the Preservation of the Thing

Art. 3224. Preservation of property of another

He who, having in his possession the property of another, whether in deposit or on loan or otherwise, has been obliged to incur any expense for its preservation, acquires on this property two species of rights.

Art. 3225. Rights of pledge and retention against owner

Against the owner of the thing, his right is in the nature of that of pledge, by virtue of which he may retain the thing until the expenses, which he has incurred, are repaid.

He possesses this qualified right of pledge, even against the creditors of the owner, if they seek to have the thing sold.  He may refuse to restore it, unless they either refund his advance, or give him security that the thing shall fetch a sufficient price for that purpose.

Art. 3226. Right of preference against creditors

Finally, he who has incurred these expenses has a privilege against these same creditors, by virtue of which he has preference over them out of the price of the thing sold, for the amount of such necessary charges as he shall have incurred for its preservation.  This is the privilege in question in the present paragraph.

§ 5. Of the Privilege of the Vendor of Movable Effects

Art. 3227. Vendor's privilege on movables;  agricultural products of the United States

He who has sold to another any movable property, which is not paid for, has a preference on the price of his property, over the other creditors of the purchaser, whether the sale was made on a credit or without, if the property still remains in the possession of the purchaser.

So that although the vendor may have taken a note, bond or other acknowledgment from the buyer, he still enjoys the privilege.

Any person who may sell the agricultural products of the United States in the city of New Orlenas [Orleans], shall be entitled to a special lien and privilege thereon to secure the payment of the purchase money, for and during the space of five days only, after the day of delivery; within which time the vendor shall be entitled to seize the same in whatsoever hands or place they may be found, and his claim for the purchase money shall have preference over all others.  If the vendor gives a written order for the delivery of any such products and shall say therein that they are to be delivered without vendor's privilege, then no lien shall attach thereto.

Art. 3228. Loss of privilege by sale with other property of purchaser

But if he allows the things to be sold, confusedly with a mass of other things belonging to the purchaser, without making his claim, he shall lose the privilege, because it will not be possible in such a case to ascertain what price they brought.

Art. 3229. Vendor's claim for restitution

If the sale was not made on credit, the seller may even claim back the things in kind, which were thus sold, as long as they are in possession of the purchaser, and prevent the resale of them; provided the claim for restitution be made within eight days of the delivery at farthest, and that the identity of the objects be established.

Art. 3230. Restitution dependent on identification

When the things reclaimed consist in merchandise, which is sold in bales, packages or cases, the claim shall not be admitted if they have been untied, unpacked or taken out of the cases and mixed with other things of the same nature belonging to the purchaser, so that their identity can no longer be established.

Art. 3231. Restitution of things easily recognized

But if the things sold are of such a nature as to be easily recognized, as household furniture, even although the papers or cloths, which covered them at the time of delivery, be removed, the claim for restitution shall be allowed.

§ 6. Of the Privilege of the Innkeeper on the Effects of the Traveler

Art. 3232. Innkeepers, definition

Those are called innkeepers, who keep a tavern or hotel, and make a business of lodging travelers.

Art. 3233. Innkeepers' rights on property of guests

Innkeepers and all others who let lodgings or receive or take boarders have a privilege, or more properly, a right of pledge on the property of all persons who take their board or lodging with them, by virtue of which they may retain property, and have it sold, to obtain payment of what such persons may owe them on either accounts above mentioned and this privilege shall extend to extras not to exceed Ten ($10) Dollars supplied by the proprietors of hotels, inns and boarding house keepers.

Amended by Acts 1896, No. 29; Acts 1898, No. 110.

Art. 3234. Property covered by innkeepers' privilege

Innkeepers, hotel, boarding house and lodging house keepers enjoy this privilege on all the property which the sojourner has brought to their place, whether it belongs to him or not, because the property so brought into their place has become pledged to them by the mere fact of its introduction into their place.

Amended by Acts 1896, No. 35.

Art. 3235. Travelers, definition

The term travelers applies to strangers and such as being transiently in a place where they have no domicile, take their board and lodging at an inn.

Art. 3236. Sale or donation of unclaimed and unredeemed property, procedure

Whenever any trunk, carpetbag, valise, box, bundle or other baggage which shall hereafter come into the possession of the keeper of any hotel, motel, inn, boarding or lodging house, as such, and shall remain unclaimed or unredeemed for the period of six months, such keeper may proceed to sell the same at public auction, and without judicial proceedings, and out of the proceeds of such sale may retain the amount due him for board, lodging and extras, and the charges for storage, if any, and the expense of advertising and sale thereof, but no such sale shall be made until the expiration of four weeks from the publication of notice of such sale in a newspaper published in or nearest the city, town, village or place in which said hotel, motel, inn, boarding or lodging house is situated.  Said notice shall be published once, in some newspaper, daily or weekly, of general circulation, and shall contain a description of each trunk, carpetbag, valise, box, bundle or other baggage as near as may be; the name of the owner, if known; the name of the keeper, and the time and place of sale.  The expense incurred for advertising shall be a lien upon such trunk, carpetbag, valise, box, bundle or other baggage in a ratable proportion according to the value of such property, or thing or article sold.  In case any balance arising upon such sale shall not be claimed by the rightful owner within one week from the day of said sale the same shall be paid to any authorized charity or state institution.

Alternatively, the hotel, motel, inn, boarding house, or lodging house at its discretion may store the unclaimed or unredeemed possessions for six months and at the expiration of this period donate, give or turn them over to an authorized charity, or state institution.

Amended by Acts 1896, No. 28; Acts 1974, No. 713, §1.

Section 3. Of the Privilege on Ships and Merchandise

Art. 3237. Privileges on ships and vessels, enumeration and ranking;  prescription

The following debts are privileged on the price of ships and other vessels, in the order in which they are placed:

1.  Legal and other charges incurred to obtain the sale of a ship or other vessel, and the distribution of the price.

2.  Debts for pilotage, towage, wharfage and anchorage.

3.  The expenses of keeping the vessel from the time of her entrance into port until sale, including the wages of persons employed to watch her.

4.  The rent of stores, in which the rigging and apparel are deposited.

5.  The maintenance of the ship and her tackle and apparatus, since her return into port from her last voyage.

6.  The wages of the captain and crew employed on the last voyage.

7.  Sums lent to the captain for the necessities of the ship during the last voyage, and reimbursement of the price of merchandise sold by him for the same purpose.

8.  Sums due to sellers, to those who have furnished materials and to workmen employed in the construction, if the vessel has never made a voyage; and those due to creditors for supplies, labor, repairing, victuals, armament and equipment, previous to the departure of the ship, if she has already made a voyage.

9.  Money lent on bottomry for refitting, victualing, arming and equipping the vessel before her departure.

10.  The premiums due for insurance made on the vessel, tackle and apparel, and on the armament and equipment of the ship.

11.  The amount of damage due to freighters for the failure in delivering goods which they have shipped, or for the reimbursement of damage sustained by the goods through the fault of the captain or crew.

12.  Where any loss or damage has been caused to the person or property of any individual by any carelessness, neglect or want of skill in the direction or management of any steamboat, barge, flatboat, water craft or raft, the party injured shall have a privilege to rank after the privileges above specified.

The term of prescription of privileges against ships, steamboats and other vessels shall be six months.

Art. 3238. Proportionate payment to creditors of same rank

The creditors, named in each number of the preceding article, except number twelve, come in together, and must all suffer a ratable diminution, if the fund be insufficient.

Art. 3239. Right of pursuit after sale of ship

Creditors having privileges on ships or other vessels, may pursue the vessel in the possession of any person who has obtained it by virtue of a sale; in this case, however, a distinction must be made between a forced and a voluntary sale.

Art. 3240. Privilege on price of adjudication in case of forced sale

When the sale was a forced one, the right of the purchaser to the property becomes irrevocable; he owes only the price of adjudication, and over it the creditors exercise their privilege, in the order above prescribed.

Art. 3241. Voluntary sale, distinction between sale in port or on voyage

When the sale is voluntary on the part of the owner, a distinction is to be made, whether the* vessel was in port or on a voyage.

*English translation of French text incomplete; should include "ship or other."

Art. 3242. Voluntary sale of ship in port, rights of privileged creditors

When a sale has been made, the vessel being in port, the creditors of the vendor, who enjoy the privilege for some cause anterior to the act of sale, may demand payment and enforce their rights over the ship, until a voyage has been made in the name and at the risk of the purchaser, without any claim interposed by them.

Art. 3243. Loss of privilege after voyage in name of purchaser

But when the ship has made a voyage in the name and at the risk of the purchaser, without any claim on the part of the privileged creditors of the vendor, these privileges are lost and extinct against the ship, if she was in port at the time of sale.

Art. 3244. Voluntary sale of ship while on voyage, rights of privileged creditors

On the other hand, if the ship was on a voyage at the time of sale, the privilege of the creditor against the purchaser shall only become extinct after the ship shall have returned to the port of departure, and the creditors of the vendor shall have allowed her to depart on another voyage for the account and risk of the purchaser, and shall have made no claim.

Art. 3245. Voyage, definition

A ship is considered to have made a voyage, when her departure from one port and arrival at another shall have taken place, or when, without having arrived at another, more than sixty days have elapsed between the departure and return to the same port; or when the ship, having departed on a long voyage, has been out more than sixty days, without any claim on the part of persons pretending a privilege.

Art. 3246. Captain's privilege on cargo for freight charges

The captain has a privilege for the freight during fifteen days after the delivery of the merchandise, if they have not passed into third hands.  He may even keep the goods, unless the shipper or consignee shall give him security for the payment of the freight.

Art. 3247. Privilege of consignee or agent on merchandise consigned

Every consignee or commission agent who has made advances on goods consigned to him, or placed in his hands to be sold for account of the consignor, has a privilege for the amount of these advances, with interest and charges on the value of the goods, if they are at his disposal in his stores, or in a public warehouse, or if, before their arrival, he can show, by a bill of lading or letter of advice, that they have been dispatched to him.

This privilege extends to the unpaid price of the goods which the consignee or agent shall have thus received and sold.

Every consignee, commission agent or factor shall have a privilege, preferred to any attaching creditor, on the goods consigned to him for any balance due him, whether specially advanced on such goods or not; provided they have been received by him, or an invoice or bill of lading has been received by him previous to the attachment; provided, that the privilege established by this article shall not have a preference over a privilege pre-existing on the goods aforesaid in behalf of a resident creditor of this State.

Art. 3248. Rights of consignor on insolvency of consignee or agent

In the event of the failure of the consignee or commission agent, the consignor has not only a right to reclaim the goods sent by him, and which remain unsold in the hands of the consignee or agent, if he can prove their identity, but he has also a privilege on the price of such as have been sold, if the price has not been paid by the purchaser, or passed into account current between him and the bankrupt.

Chapter 4. Of Privileges on Immovables

Art. 3249. Special privileges on immovables

Creditors who have a privilege on immovables are:

(1) The vendor on the estate by him sold, for the payment of the price or so much of it as is unpaid, whether it was sold on or without a credit.

(2) Those who are granted special privileges on immovables by legislation.

Amended by Acts 2019, No. 325, §2, eff. Jan. 1, 2020.

Art. 3250. Extent of vendor's privilege

The privilege granted to the vendor on the immovable sold by him, extends to the beasts and agricultural implements attached to the estate, and which made part of the sale.

Art. 3251. Successive sales, preference among vendors

If there are several successive sales, on which the price is due wholly or in part, the first vendor is preferred to the second, the second to the third, and so throughout and as provided by Article 3186, and assuming timely recordation as provided in Article 3274, each such vendor is preferred to the previously recorded mortgages of his vendees and their successors.

Acts 1989, No. 538, §1.

Chapter 5. Of Privileges Which Embrace Both Movables and Immovables

Art. 3252. General privileges on both movables and immovables

The privileges which extend alike to movables and immovables are the following:

1.  Funeral charges.

2.  Judicial charges.

3.  Expenses of last illness.

4.  The wages of servants.

5.  The salaries of secretaries, clerks and other agents of that kind.

Whenever a surviving spouse or minor children of a deceased person shall be left in necessitous circumstances, and not possess in their own rights property to the amount of one thousand dollars, the surviving spouse or the legal representatives of the children, shall be entitled to demand and receive from the succession of the deceased spouse or parent, a sum which added to the amount of property owned by them, or either of them, in their own right, will make up the sum of one thousand dollars, and which amount shall be paid in preference to all other debts, except those secured by the vendor's privilege on both movables and immovables, conventional mortgages, and expenses incurred in selling the property.  The surviving spouse shall have and enjoy the usufruct of the amount so received from the deceased spouse's succession, until remarriage, which amount shall afterwards vest in and belong to the children or other descendants of the deceased spouse.

(Amended by Acts 1917, Ex.Sess.) No. 17; Acts 1918, No. 242; Acts 1979, No. 711, §1.

Art. 3253. Order of payment of privileges;  debtor's movables taken before immovables

When, for want of movables, the creditors, who have a privilege according to the preceding article, demand to be paid out of the proceeds of the immovables of the debtor, the payment must be made in the order laid down in the following chapter.

Chapter 6. Of the Order in Which Privileged Creditors Are to Be Paid

Art. 3254. Special privileges prime general privileges on movables;  ranking among general privileges when movables sufficient

If the movable property, not subject to any special privilege, is sufficient to pay the debts which have a general privilege on the movables, those debts are paid in the following order:

Funeral charges are the first paid.

Law charges, the second.

Expenses of the last illness, the third.

The wages of servants, the fourth.

Supplies of provisions, the fifth.

The salaries of clerks, secretaries, and others of that nature, the sixth.

The thousand dollars secured by law to the surviving spouse or minor children, as set forth in Article 3252, shall be paid in preference to all other debts, except those for the vendor's privileges and expenses incurred in selling the property.

Amended by Acts 1979, No. 711, §1.

Art. 3255. Order of payment when available movables insufficient

But when part of the movables are subject to special privileges, and the remainder of the movables are not sufficient to discharge the debts having a privilege on the whole mass of movables, or if there be equality* between the special privileges, the following rules shall direct the determination.

*In this context, the French word "concurrence" would be translated more properly by "competition" than by "equality."

Art. 3256. Lessor's privilege primed by costs of sale

Whatever may be the privilege of the lessor, charges for selling the movables subjected to it are paid before that which is due for the rent, because it is these charges which procure the payment of the rent.

Art. 3257. Lessor's privilege primed by funeral charges

The case is the same with respect to the funeral expenses of the debtor and his family; when there is no other source from which they can be paid, they have a preference over the debt for rent or hire, on the price of the movables contained in the house or on the farm.

Art. 3258. Lessor's privilege primes other general privileges

But the lessor has a preference on the price of these movables, over all the other privileged debts of the deceased, such as expenses of the last illness, and others which have a general privilege on the movables.

Art. 3259. Lessor's privilege on crops primed by supplies and labor

With regard to the crops which are subject to the lessor's privilege, the expenses for seed and labor, the wages of overseers and managers are to be paid out of the product of the year, in preference to the lessor's debt.

So, also, he who supplied the farming utensils, and who has not been paid, is paid in preference to the lessor out of the price of their sale.

Art. 3260. Ranking between privileges of lessor and depositor

If, among the movables with which the house or farm, or any other thing subject to the lessor's privilege, is provided, there should be some which were deposited by a third person in the hands of the lessor* or farmer, the lessor shall have a preference over the depositary** on the things deposited for the payment of his rent, if there are no other movables subject to his privilege, or if they are not sufficient; unless it be proved that the lessor knew that the things deposited did not belong to his tenant or farmer.

Amended by Acts 1871, No. 87.

*Note error in English translation of French text; "lessor" should be "lessee."

**Note error in English translation of French text; "depositary" should be "depositor."

Art. 3261. Depositor's privilege and other privileges

With the exception stated in the foregoing article, the privilege of the depositor on the thing deposited is not preceded by any other privileged debt, even funeral expenses, unless it be that the depositor must contribute to the expense of sealing and making inventory, because this expense is necessary to the preservation of the deposit.

Art. 3262. Privilege for expenses of preservation and other privileges

The privilege of him who has taken care of the property of another, has a preference over that property, for the necessary expenses which he incurred, above all the other claims for expenses, even funeral charges; his privilege yields only to that for the charges on the sale of the thing preserved.

Art. 3263. Vendor's privilege and other privileges

The privilege of the vendor on movables sold by him, which are still in the possession of the vendee, yields to that of the owner of the house or farm which they serve to furnish or supply, for his rents.  It yields also to the charges for affixing seals and making inventories, but not to the funeral or other expenses of the debtor.

Art. 3264. Privilege of innkeepers

The privilege of innkeepers on the effects of travelers deceased in their house, is postponed to funeral and law charges, but is preferred* to all the other privileged debts of the deceased.

*English translation of French text incomplete; should include "on the price of these effects."

Art. 3265. Privilege of carriers

The privilege of carriers, for the cost of transportation and incidental expenses, yields only to the charges which would arise on the sale of the goods.

The case is the same respecting the freight of goods carried on board a ship or other vessels [vessel].

Art. 3266. Immovables liable when movables insufficient

If the movables of the debtor, by reason of the special privileges affecting them or for any other cause, are not sufficient to discharge the debts having a privilege on the whole movable property, the balance must be raised on the immovables of the debtor, as hereafter provided.

Art. 3267. Special privileges on immovables and other privileges

 If the immovables of the debtor are subject to vendor's privileges or other special privileges, the vendors and creditors having other special privileges shall be paid from the price of the object affected in their favor, in preference to other privileged debts of the debtor, even funeral charges, except the charges for affixing seals, making inventories, and others which may have been necessary to procure the sale of the thing.

Amended by Acts 2019, No. 325, §2, eff. Jan. 1, 2020.

Art. 3268. Vendor's privilege on land and workmen's privilege on buildings

Art. 3268. Repealed by Acts 2019, No. 325, §3, eff. Jan. 1, 2020.

Art. 3269. Order of payment out of immovables;  distribution of loss among mortgage creditors

With the exception of special privileges that exist on immovables in favor of vendors and other creditors, as declared above, the debts privileged on the movables and immovables generally ought to be paid, if the movables are insufficient, out of the product of the immovables belonging to the debtor, in preference to all other privileged and mortgage creditors.

The loss which may then result from their payment must be borne by the creditor whose mortgage is the least ancient, and so in succession, ascending according to the order of the mortgages, or by pro rata contributions where two or more mortgages have the same date.

Amended by Acts 2019, No. 325, §2, eff. Jan. 1, 2020.

Art. 3270. Effect of priorities among privileges

When the debts privileged on the movables and immovables can not be paid entirely, either because the movable effects are of small value, or subject to special privileges which claim a preference, or because the movables and immovables together do not suffice, the deficiency must not be borne proportionally among the debtors,* but the debts must be paid according to the order established above, and the loss must fall on those which are of inferior dignity.**

*Note error in English translation of French text; "debtors" should be "debts."

**English translation of French text incomplete; should include "and which cannot be discharged."

Chapter 7. How Privileges Are Preserved and Recorded

Art. 3271. Vendor's privilege on immovables, recordation

The vendor of an immovable only preserves his privilege on the object, when he has caused to be duly recorded at the office for recording mortgages, his act of sale, in the manner directed hereafter, whatever may be the amount due to him on the sale.

Art. 3272. Privileges of contractors, mechanics and materialmen;  recordation and ranking

Art. 3272. Repealed by Acts 2019, No. 325, §3, eff. Jan. 1, 2020.

Art. 3273. Recordation, effect against third persons

Privileges are valid against third persons, from the date of the recording of the act or evidence of indebtedness as provided by law.

Art. 3274. Time and place of recordation;  effectiveness

No privilege shall have effect against third persons, unless recorded in the manner required by law in the parish where the property to be affected is situated. It shall confer no preference on the creditor who holds it, over creditors who have acquired a mortgage, unless the act or other evidence of the debt is recorded within seven days from the date of the act or obligation of indebtedness when the registry is required to be made in the parish where the act was passed or the indebtedness originated and within fifteen days, if the registry is required to be made in any other parish of this state. It shall, however, have effect against all parties from date of registry.

The provisions of this Article are subject to exceptions provided by legislation.

Amended by Acts 1877, No. 45; Acts 2019, No. 325, §2, eff. Jan. 1, 2020.

Art. 3276. Priority of claims against succession arising after death

The charges against a succession, such as funeral charges, law charges, lawyer fees for settling the succession, the thousand dollars secured in certain cases to the surviving spouse or minor heirs of the deceased, and all claims against the succession originating after the death of the person whose succession is under administration, are to be paid before the debts contracted by the deceased person, except as otherwise provided for herein, and they are not required to be recorded.

Amended by Acts 1979, No. 711, §1.

Chapter 8. Of the Manner in Which Privileges Are Extinguished

Art. 3277. Methods of extinction

Privileges become extinct:

1.  By the extinction of the thing subject to the privilege.

2.  By the creditor acquiring the thing subject to it.

3.  By the extinction of debt which gave birth to it.

4.  By prescription.

Title XXII. Mortgages

Chapter 1. General Provisions

Art. 3278. Mortgage defined

Mortgage is a nonpossessory right created over property to secure the performance of an obligation.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

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.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

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.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3281. Mortgage established only in authorized cases

Mortgage may be established only as authorized by legislation.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3282. Accessory nature

Mortgage is accessory to the obligation that it secures.  Consequently, except as provided by law, the mortgagee may enforce the mortgage only to the extent that he may enforce any obligation it secures.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3283. Kinds of mortgages

Mortgage is conventional, legal, or judicial, and with respect to the manner in which it burdens property, it is general or special.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3284. Conventional, legal, and judicial mortgages

A conventional mortgage is established by contract.

A legal mortgage is established by operation of law.

A judicial mortgage is established by law to secure a judgment.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3285. General and special mortgages distinguished

A general mortgage burdens all present and future property of the mortgagor.

A special mortgage burdens only certain specified property of the mortgagor.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

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.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992; Acts 1992, No. 649, §1, eff. July 1, 1993; Acts 1993, No. 948, §6, eff. June 25, 1993.

Chapter 2. Conventional Mortgages

Art. 3287. Conventional mortgage

A conventional mortgage may be established only by written contract.  No special words are necessary to establish a conventional mortgage.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3288. Requirements of contract of mortgage

A contract of mortgage must state precisely the nature and situation of each of the immovables or other property over which it is granted; state the amount of the obligation, or the maximum amount of the obligations that may be outstanding at any time and from time to time that the mortgage secures; and be signed by the mortgagor.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3289. Acceptance

A contract of mortgage need not be signed by the mortgagee, whose consent is presumed and whose acceptance may be tacit.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3290. Power to mortgage

A conventional mortgage may be established only by a person having the power to alienate the property mortgaged.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3291. Presumption that things are subject to conventional mortgage

A conventional mortgage of a corporeal immovable, servitude of right of use, or lease, as the case may be, includes the things made susceptible of mortgage with them by Article 3286, unless the parties expressly agree to the contrary.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3292. Mortgage of future property permitted in certain cases

A special mortgage given over property the mortgagor does not own is established when the property is acquired by the mortgagor.  A general conventional mortgage is permitted only when expressly provided by law.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3293. Obligations for which mortgage may be established

A conventional mortgage may be established to secure performance of any lawful obligation, even one for the performance of an act.  The obligation may have a term and be subject to a condition.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3294. Mortgage securing obligation that is not for the payment of money

A mortgage that secures an obligation other than one for the payment of money secures the claim of the mortgagee for the damages he may suffer from a breach of the obligation, up to the amount stated in the mortgage.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3295. Mortgage securing another's obligation

A person may establish a mortgage over his property to secure the obligations of another.  In such a case, the mortgagor may assert against the mortgagee any defense to the obligation which the mortgage secures that the obligor could assert except lack of capacity or discharge in bankruptcy of the obligor.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3296. Right of mortgagor to raise defenses

Neither the mortgagor nor a third person may claim that the mortgage is extinguished or is unenforceable because the obligation the mortgage secures is extinguished or is unenforceable unless the obligor may assert against the mortgagee the extinction or unenforceability of the obligation that the mortgage secures.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3297. Restrictions upon recourse of mortgagee

The mortgagee's recourse for the satisfaction of an obligation secured by a mortgage may be limited in whole or in part to the property over which the mortgage is established.

Acts 1991, No. 652, §1, eff. Jan. 1, 1992.

Art. 3298. Mortgage may secure future obligations

A.  A mortgage may secure obligations that may arise in the future.

B.  As to all obligations, present and future, secured by the mortgage, notwithstanding the nature of such obligations or the date they arise, the mortgage has effect between the parties from the time the mortgage is established and as to third persons from the time the contract of mortgage is filed for registry.

C.  A promissory note or other evidence of indebtedness secured by a mortgage need not be paraphed for identification with the mortgage and need not recite that it is secured by the mortgage.

D.  The mortgage may be terminated by the mortgagor or his successor upon reasonable notice to the mortgagee when an obligation does not exist and neither the mortgagor nor the mortgagee is bound to the other or to a third person to permit an obligation secured by the mortgage to be incurred.  Parties may contract with reference to what constitutes reasonable notice.

E.  The mortgage continues until it is terminated by the mortgagor or his successor in the manner provided in Paragraph D of this Article, or until the mortgage is extinguished in some other lawful manner.  The effect of recordation of the mortgage ceases in accordance with the provisions of Articles 3357 and 3358.

Acts 1992, No. 779, §1; Acts 1995, No. 1087, §1; Acts 2010, No. 385, §1.

Chapter 3. Judicial and Legal Mortgages

Art. 3299. Judicial and legal mortgages

A judicial mortgage secures a judgment for the payment of money.  A legal mortgage secures an obligation specified by the law that provides for the mortgage.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3300. Creation of judicial mortgage

A judicial mortgage is created by filing a judgment with the recorder of mortgages.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3301. Creation of legal mortgage

A legal mortgage is created by complying with the law providing for it.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3302. Property burdened by judicial and legal mortgages

Judicial and legal mortgages burden all the property of the obligor that is made susceptible of mortgage by Paragraphs 1 through 4 of Article 3286 or that is expressly made subject to judicial or legal mortgage by other law.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3303. Nature of judicial and legal mortgages

Judicial and legal mortgages are general mortgages.  They are established over property that the obligor owns when the mortgage is created and over future property of the obligor when he acquires it.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3304. Judgment;  suspensive appeal

A judicial mortgage is not affected or suspended by a suspensive appeal or stay of execution of the judgment.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3305. Judgments of other jurisdictions

The filing of an authenticated copy of a judgment of a court of a jurisdiction foreign to this state, such as the United States, another state, or another country, creates a judicial mortgage only when so provided by special legislation, or when accompanied by a certified copy of a judgment or order of a Louisiana court recognizing it and ordering it executed according to law.

In all other cases the judgment of a court of a jurisdiction foreign to this state creates a judicial mortgage only when a Louisiana court has rendered a judgment making the foreign judgment the judgment of the Louisiana court, and the Louisiana judgment has been filed in the same manner as other judgments.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3306. Judgment against person deceased

A judicial mortgage burdens the property of the judgment debtor only and does not burden other property of his heirs or legatees who have accepted his succession.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Chapter 4. The Effect and Rank of Mortgages

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.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

Art. 3311. Mortgage securing several obligations

In the absence of contrary agreement, the proceeds realized from enforcement of the mortgage shall be apportioned among several obligations secured by the mortgage in proportion to the amount owed on each at the time of enforcement.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

{{NOTE: FORMER ART. 3311 REPEALED BY ACTS 1992, NO. 1132, §1, EFF. JAN. 1, 1993.

Art. 3312. Transfer of the secured obligation

A transfer of an obligation secured by a mortgage includes the transfer of the mortgage.  In such a case, the transferor warrants the existence, validity and enforceability of the mortgage only to the extent that he warrants the existence, validity, or enforceability of the obligation.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

{{NOTE: FORMER ART. 3312 REPEALED BY ACTS 1992, NO. 1132, §1, EFF. JAN. 1, 1993.}}

Art. 3313. Transfer does not imply subordination

A transferor of part of an obligation secured by a mortgage does not subordinate his rights to those of the transferee with respect to the portion of the mortgaged obligation he retains.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

{{NOTE: FORMER ART. 3313 REPEALED BY ACTS 1992, NO. 1132, §1, EFF. JAN. 1, 1993.}}

Chapter 5. Third Possessors

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.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.

{{NOTE: FORMER ART. 3315 REPEALED BY ACTS 1992, NO. 1132, §1, EFF. JAN. 1, 1993.}}

Art. 3316. Liability of third possessor

The deteriorations, which proceed from the deed or neglect of the third possessor to the prejudice of the creditors who have a privilege or a mortgage, give rise against the former to an action of indemnification.

Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.