§ 10:9-102 — Definitions and index of definitions

Louisiana § 10:9-102

• Jurisdiction: Louisiana
• Title 10: Commercial Laws

Text

§9-102. Definitions and index of definitions
(a) Chapter 9 definitions. In this Chapter:
(1) "Accession" means goods that are physically united with other goods in such a
manner that the identity of the original goods is not lost.
(2) "Account", except as used in "account for", "account statement", "account to",
"commodity account" in Paragraph (14) of this Subsection, "customer's account", "deposit
account" in Paragraph (29) of this Subsection, "on account of", and "statement of account",
means a right to payment of a monetary obligation, whether or not earned by performance,
(i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise
disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued
or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy
provided or to be provided, (vi) for the use or hire of a vessel under a charter or other
contract, (vii) arising out of the use of a credit or charge card or information contained on or
for use with the card, or (viii) as winnings in a lottery or other game of chance operated or
sponsored by a state, governmental unit of a state, or person licensed or authorized to operate
the game by a state or governmental unit of a state. The term includes controllable accounts
and health-care-insurance receivables. The term further includes any right to payment that
is payable out of or measured by production of oil, gas, or other minerals, or is otherwise
attributable to a mineral right, whether or not the payment is classified as rent under the
Mineral Code, except that the term does not include bonuses, delay rentals, royalties, or
shut-in payments payable to a landowner or mineral servitude owner under a mineral lease,
nor does the term include other payments to them that are classified as rent under the Mineral
Code. The term does not include (i) chattel paper, (ii) tort claims, (iii) deposit accounts, (iv)
investment property, (v) letter-of-credit rights or letters of credit, (vi) rights to payment for
money or funds advanced or sold, other than rights arising out of the use of a credit or charge
card or information contained on or for use with the card, (vii) life insurance policies or
rights to payment or claims thereunder, (viii) judgments or rights to payment represented
thereby, or (ix) rights to payment evidenced by an instrument.
(3) "Account debtor" means a person obligated on an account, chattel paper, or
general intangible. The term does not include persons obligated to pay a negotiable
instrument, even if the negotiable instrument evidences chattel paper.
(4) "Accounting", except as used in "accounting for", means a record:
(A) signed by a secured party;
(B) indicating the aggregate unpaid secured obligations as of a date not more than
thirty-five days earlier or thirty-five days later than the date of the record; and
(C) identifying the components of the obligations in reasonable detail.
(5) "Agricultural lien" means a lien on farm products:
(A) which secures payment or performance of an obligation for:
(i) goods or services furnished in connection with a debtor's farming operation; or
(ii) rent on leased real property used by a debtor in connection with its farming
operation;
(B) which is created by statute in favor of a person that:
(i) furnished goods or services to a debtor in connection with a debtor's farming
operation; or
(ii) leased real property used by a debtor in connection with the debtor's farming
operation; and
(C) whose effectiveness does not depend on the person's possession of the personal
property.
(6) "As-extracted collateral" means:
(A) oil, gas, or other minerals that are subject to a security interest that:
(i) is created by a debtor having a mineral right that provides the debtor an interest
in such minerals when the minerals are reduced to possession; and
(ii) attaches to the minerals as severed by being reduced to possession; or
(B) accounts arising out of the sale at the wellhead or minehead of oil, gas, or other
minerals attributable to a mineral right held by the debtor such that the debtor's interest in the
minerals arises when the minerals are reduced to possession.
(7) [Reserved.]
(7.1) "Assignee", except as used in "assignee for benefit of creditors", means a
person (i) in whose favor a security interest that secures an obligation is created or provided
for under a security agreement, whether or not the obligation is outstanding or (ii) to which
an account, chattel paper, payment intangible, or promissory note has been sold. The term
includes a person to which a security interest has been transferred by a secured party.
(7.2) "Assignor" means a person that (i) under a security agreement creates or
provides for a security interest that secures an obligation or (ii) sells an account, chattel
paper, payment intangible, or promissory note. The term includes a secured party that has
transferred a security interest to another person.
(8) "Bank" means an organization that is engaged in the business of banking. The
term includes savings banks, savings and loan associations, credit unions, and trust
companies.
(9) "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the
like.
(9.1) "Central bank digital currency" means a digital currency, a digital medium of
exchange, or a digital monetary unit of account issued by the Board of Governors of the
United States Federal Reserve System, or a federal agency of the United States, that is
processed, validated, or made directly available to a consumer.
(10) "Certificate of title" means a certificate of title with respect to which a statute
provides for the security interest in question to be indicated on the certificate as a condition
or result of the security interest's obtaining priority over the rights of a lien creditor with
respect to the collateral. The term includes another record maintained as an alternative to a
certificate of title by the governmental unit that issues certificates of title if a statute permits
the security interest in question to be indicated on the record as a condition or result of the
security interest's obtaining priority over the rights of a lien creditor with respect to the
collateral.
(11) "Chattel paper" means:
(A) a right to payment of a monetary obligation secured by specific goods, if the right
to payment and security agreement are evidenced by a record; or
(B) a right to payment of a monetary obligation owed by a lessee under a lease
agreement with respect to specific goods and a monetary obligation owed by the lessee in
connection with the transaction giving rise to the lease, if:
(i) the right to payment and lease agreement are evidenced by a record; and
(ii) the predominant purpose of the transaction giving rise to the lease was to give
the lessee the right to possession and use of the goods.
The term does not include a right to payment arising out of a charter or other contract
involving the use or hire of a vessel or a right to payment arising out of the use of a credit or
charge card or information contained on or for use with the card.
(12) "Collateral" means the property subject to a security interest or agricultural lien.
The term includes:
(A) proceeds to which a security interest attaches;
(B) accounts, chattel paper, payment intangibles, and promissory notes that have
been sold; and
(C) goods that are the subject of a consignment.
(13) [Reserved.]
(14) "Commodity account" means an account maintained by a commodity
intermediary in which a commodity contract is carried for a commodity customer.
(15) "Commodity contract" means a commodity futures contract, an option on a
commodity futures contract, a commodity option, or another contract if the contract or option
is:
(A) traded on or subject to the rules of a board of trade that has been designated as
a contract market for such a contract pursuant to federal commodities laws; or
(B) traded on a foreign commodity board of trade, exchange, or market, and is
carried on the books of a commodity intermediary for a commodity customer.
(16) "Commodity customer" means a person for which a commodity intermediary
carries a commodity contract on its books.
(17) "Commodity intermediary" means a person that:
(A) is registered as a futures commission merchant under federal commodities law;
or
(B) in the ordinary course of its business provides clearance or settlement services
for a board of trade that has been designated as a contract market pursuant to federal
commodities law.
(18) "Communicate" means:
(A) to send a written or other tangible record;
(B) to transmit a record by any means agreed upon by the persons sending and
receiving the record; or
(C) in the case of transmission of a record to or by a filing office, to transmit a record
by any means prescribed by filing-office rule.
(19) "Consignee" means a merchant to which goods are delivered in a consignment.
(20) "Consignment" means a transaction, regardless of its form, in which a person
delivers goods to a merchant for the purpose of sale and:
(A) the merchant:
(i) deals in goods of that kind under a name other than the name of the person
making delivery;
(ii) is not an auctioneer; and
(iii) is not generally known by its creditors to be substantially engaged in selling the
goods of others;
(B) with respect to each delivery, the aggregate value of the goods is one thousand
dollars or more at the time of delivery;
(C) the goods are not consumer goods immediately before delivery; and
(D) the transaction does not create a security interest that secures an obligation.
(21) "Consignor" means a person that delivers goods to a consignee in a
consignment.
(22) "Consumer debtor" means a debtor in a consumer transaction.
(23) "Consumer goods" means goods that are used or bought for use primarily for
personal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumer transaction in which:
(A) an individual incurs an obligation primarily for personal, family, or household
purposes; and
(B) a security interest in consumer goods secures the obligation.
(25) "Consumer obligor" means an obligor who is an individual and who incurred
the obligation as part of a transaction entered into primarily for personal, family, or
household purposes.
(26) "Consumer transaction" means a transaction in which (i) an individual incurs
an obligation primarily for personal, family, or household purposes, (ii) a security interest
secures the obligation, and (iii) the collateral is held or acquired primarily for personal,
family, or household purposes. The term includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of a financing statement which:
(A) identifies, by its file number, the initial financing statement to which it relates;
and
(B) indicates that it is a continuation statement for, or that it is filed to continue the
effectiveness of, the identified financing statement.
(27.1) "Controllable account" means an account evidenced by a controllable
electronic record that provides that the account debtor undertakes to pay the person that has
control under R.S. 10:12-105 of the controllable electronic record.
(27.2) "Controllable payment intangible" means a payment intangible evidenced by
a controllable electronic record that provides that the account debtor undertakes to pay the
person that has control under R.S. 10:12-105 of the controllable electronic record.
(28) "Debtor" means:
(A) a person having an interest, other than a security interest or lien, in the collateral,
whether or not the person is an obligor;
(B) a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(C) a consignee.
(29) "Deposit account" means a demand, time, savings, passbook, or similar account
maintained with a bank. The term does not include investment property, a central bank
digital currency, or accounts evidenced by an instrument.
(30) "Document" means a document of title or a receipt of the type described in R.S.
10:7-201(b).
(31) [Reserved.]
(32) "Encumbrance" means a right, other than an ownership interest, in real property.
The term includes mortgages and privileges on real property. "Encumbrancer" means a
person holding an encumbrance.
(33) "Equipment" means goods other than inventory, farm products, or consumer
goods.
(34) "Farm products" means goods, other than standing timber, with respect to which
the debtor is engaged in a farming operation and which are:
(A) crops grown, growing, or to be grown, and whether harvested or unharvested,
including grains, beans, vegetables, grasses, legumes, melons, tobacco, cotton, flowers,
shrubbery, plants, and fruits, nuts, berries and other similar products, including:
(i) crops produced on trees, vines, and bushes; and
(ii) aquatic goods produced in aquacultural operations; and
(iii) any other type of agricultural commodity or product of every type and
description;
(B) livestock, born or unborn, including cattle, hogs, sheep, horses, bees, rabbits,
poultry, and aquatic goods produced in aquacultural operations, including oysters, crabs,
crawfish, prawns, shrimp, alligators, turtles, and fish;
(C) supplies used or produced in a farming operation; or
(D) products of crops or livestock in their unmanufactured states, including seed,
ginned cotton, wool-clip, honey, syrup, meat, milk, eggs, and cut or harvested timber, but not
standing timber.
(35) "Farming operation" means raising, cultivating, propagating, fattening, grazing,
or any other farming, livestock, or aquacultural operation.
(36) "File number" means the number assigned to an initial financing statement
pursuant to R.S. 10:9-519(a).
(37) "Filing office" means an office designated in R.S. 10:9-501 as the place to file
a financing statement.
(38) "Filing-office rule" means a rule adopted pursuant to R.S. 10:9-526.
(39) "Financing statement" means a record or records composed of an initial
financing statement and any filed record relating to the initial financing statement.
(40) "Fixture filing" means the filing of a financing statement covering goods, other
than consumer goods and manufactured homes, that are to become fixtures and satisfying
R.S. 10:9-502(a) and (b), made before the goods become fixtures.
(41) "Fixtures" means goods, other than consumer goods and manufactured homes,
that after placement on or incorporation in an immovable have become a component part of
such immovable as provided in Civil Code Articles 463, 465, and 466, or that have been
declared to be a component part of an immovable under Civil Code Article 467.
(42) "General intangible" means any personal property, including things in action,
other than accounts, chattel paper, tort claims, deposit accounts, documents, goods,
instruments, investment property, letter-of-credit rights, letters of credit, life insurance
policies, and money. The term includes controllable electronic records, payment intangibles,
and software.
(43) [Reserved.]
(44) "Goods" means all things that are movable when a security interest attaches.
The term includes (i) fixtures but only if they were movable when a fixture filing covering
them was made, (ii) the interest of a debtor other than a landowner in standing timber that
is to be cut and removed under a recorded timber conveyance, (iii) the unborn young of
animals, (iv) crops grown, growing, or to be grown, even if the crops are produced on trees,
vines, or bushes, and (v) manufactured homes. The term also includes a computer program
embedded in goods and any supporting information provided in connection with a
transaction relating to the program if (i) the program is associated with the goods in such a
manner that it customarily is considered part of the goods, or (ii) by becoming the owner of
the goods, a person acquires a right to use the program in connection with the goods. The
term does not include a computer program embedded in goods that consist solely of the
medium in which the program is embedded. The term also does not include accounts, chattel
paper, tort claims, deposit accounts, documents, general intangibles, instruments, investment
property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before
extraction by being reduced to possession.
(45) "Governmental unit" means a subdivision, agency, department, county, parish,
municipality, or other unit of the government of the United States, a State, or a foreign
country. The term includes an organization, including a public trust, having a separate
corporate existence if the organization is eligible to issue debt on which interest is exempt
from income taxation under the laws of the United States. The term further includes all
public entities as defined in R.S. 39:1421(2).
(46) "Health-care-insurance receivable" means an interest in or claim under a policy
of insurance which is a right to payment of a monetary obligation for health-care goods or
services provided or to be provided.
(47) "Instrument" means a negotiable instrument or any other writing that evidences
a right to the payment of a monetary obligation, is not itself a security agreement or lease,
and is of a type that in ordinary course of business is transferred by delivery with any
necessary indorsement or assignment. The term includes a collateral mortgage note and a
negotiable certificate of deposit. The term does not include (i) investment property, (ii)
letters of credit, (iii) writings that evidence a right to payment arising out of the use of a
credit or charge card or information contained on or for use with the card, or (iv) writings
that evidence chattel paper.
(48) "Inventory" means goods, other than farm products, which:
(A) are leased by a person as lessor;
(B) are held by a person for sale or lease or to be furnished under a contract of
service;
(C) are furnished by a person under a contract of service; or
(D) consist of raw materials, work in process, or materials used or consumed in a
business.
(49) "Investment property" means a security, whether certificated or uncertificated,
security entitlement, securities account, commodity contract, or commodity account. The
term does not include a collateral mortgage note.
(50) "Jurisdiction of organization", with respect to a registered organization, means
the jurisdiction under whose law the organization is formed or organized.
(51) "Letter-of-credit right" means a right to payment or performance under a letter
of credit, whether or not the beneficiary has demanded or is at the time entitled to demand
payment or performance. The term does not include the right of a beneficiary to demand
payment or performance under a letter of credit.
(52) "Lien creditor" means:
(A) a creditor that has acquired a lien on the property involved by attachment,
sequestration, seizure, levy, or the like;
(B) an assignee for benefit of creditors from the time of assignment;
(C) a trustee in bankruptcy from the date of the filing of the petition; or
(D) a receiver in equity from the time of appointment.
(53) "Manufactured home" means a factory-built home as defined in R.S. 9:1149.1
et seq.
(54) [Reserved.]
(54.1) "Money" has the meaning in R.S. 10:1-201(b)(24), but does not include a
deposit account.
(55) "Mortgage" means a nonpossessory right created over real property, which
secures payment or other performance of an obligation. The term includes a vendor's
privilege on real property.
(56) "New debtor" means a person that becomes bound as debtor under R.S.
10:9-203(d) by a security agreement previously entered into by another person.
(57) "New value" means (i) money, (ii) money's worth in property, services, or new
credit, or (iii) release by a transferee of an interest in property previously transferred to the
transferee. The term does not include an obligation substituted for another obligation.
(58) "Noncash proceeds" means proceeds other than cash proceeds.
(59) "Obligor" means a person that, with respect to an obligation secured by a
security interest in or an agricultural lien on the collateral, (i) owes payment or other
performance of the obligation, (ii) has provided property other than the collateral to secure
payment or other performance of the obligation, or (iii) is otherwise accountable in whole
or in part for payment or other performance of the obligation. The term does not include
issuers or nominated persons under a letter of credit.
(60) "Original debtor", except as used in R.S. 10:9-310(c), means a person that, as
debtor, entered into a security agreement to which a new debtor has become bound under
R.S. 10:9-203(d).
(61) "Payment intangible" means a general intangible under which the account
debtor's principal obligation is a monetary obligation. The term includes a controllable
payment intangible.
(62) "Person related to", with respect to an individual, means:
(A) the spouse of the individual;
(B) a brother, brother-in-law, sister, or sister-in-law of the individual;
(C) an ancestor or lineal descendant of the individual or the individual's spouse; or
(D) any other relative, by blood or marriage, of the individual or the individual's
spouse, who shares the same home with the individual.
(63) "Person related to", with respect to an organization, means:
(A) a person directly or indirectly controlling, controlled by, or under common
control with the organization;
(B) an officer or director of, or a person performing similar functions with respect
to, the organization;
(C) an officer or director of, or a person performing similar functions with respect
to, a person described in Subparagraph (A);
(D) the spouse of an individual described in Subparagraph (A), (B), or (C); or
(E) an individual who is related by blood or marriage to an individual described in
Subparagraph (A), (B), (C), or (D) and shares the same home with the individual.
(64) "Proceeds" means the following property:
(A) whatever is acquired upon the sale, lease, license, exchange, or other disposition
of collateral;
(B) whatever is collected on, or distributed on account of, collateral;
(C) rights arising out of collateral;
(D) to the extent of the value of collateral, claims arising out of the loss,
nonconformity, or interference with the use of, defects or infringement of rights in, or
damage to, the collateral; or
(E) to the extent of the value of collateral and to the extent payable to the debtor or
the secured party, insurance payable by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that evidences a promise to pay a
monetary obligation, does not evidence an order to pay, and does not contain an
acknowledgment by a bank that the bank has received for deposit a sum of money or funds.
(66) "Proposal" means a record signed by a secured party which includes the terms
on which the secured party is willing to accept collateral in full or partial satisfaction of the
obligation it secures pursuant to R.S. 10:9-620, 9-621, and 9-622.
(67) "Public-finance transaction" means a secured transaction in connection with
which:
(A) debt securities are issued;
(B) all or a portion of the securities issued have an initial stated maturity of at least
twenty years; and
(C) the debtor, obligor, secured party, account debtor or other person obligated on
collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security
interest is a State or a governmental unit of a State.
(68) "Public organic record" means a record that is available to the public for
inspection and is:
(A) a record consisting of the record initially filed with or issued by a state or the
United States to form or organize an organization and any record filed with or issued by the
state or the United States which amends or restates the initial record;
(B) an organic record of a business trust consisting of the record initially filed with
a state and any record filed with the state which amends or restates the initial record, if a
statute of the state governing business trusts requires that the record be filed with the state;
or
(C) a record consisting of legislation enacted by the legislature of a state or the
Congress of the United States which forms or organizes an organization, any record
amending the legislation, and any record filed with or issued by the state or the United States
which amends or restates the name of the organization.
(69) "Pursuant to commitment", with respect to an advance made or other value
given by a secured party, means pursuant to the secured party's obligation, whether or not a
subsequent event of default or other event not within the secured party's control has relieved
or may relieve the secured party from its obligation.
(70) "Record", except as used in "for record", "of record", "record or legal title", and
"record owner", means information that is inscribed on a tangible medium or which is stored
in an electronic or other medium and is retrievable in perceivable form.
(71) "Registered organization" means an organization formed or organized solely
under the law of a single State or the United States by the filing of a public organic record
with, the issuance of a public organic record by, or the enactment of legislation by the state
or the United States. The term includes a business trust that is formed or organized under
the law of a single state if a statute of the state governing business trusts requires that the
business trust's organic record be filed with the state. A Louisiana corporation, limited
liability company, partnership in commendam (limited partnership), or registered limited
liability partnership that is registered with the Louisiana secretary of state is a registered
organization.
(72) "Secondary obligor" means a guarantor, surety, or other obligor to the extent
that:
(A) the obligor's obligation is secondary; or
(B) the obligor has a right of recourse with respect to an obligation secured by
collateral against the debtor, another obligor, or property of either.
(73) "Secured party" means:
(A) a person in whose favor a security interest is created or provided for under a
security agreement, whether or not any obligation to be secured is outstanding;
(B) a person that holds an agricultural lien;
(C) a consignor;
(D) a person to which accounts, chattel paper, payment intangibles, or promissory
notes have been sold;
(E) a trustee, indenture trustee, agent, collateral agent, or other representative in
whose favor a security interest or agricultural lien is created or provided for; or
(F) a person that holds a security interest arising under R.S. 10:4-210 or 5-118.
(74) "Security agreement" means an agreement that creates or provides for a security
interest.
(75) [Reserved.]
(76) "Software" means a computer program and any supporting information provided
in connection with a transaction relating to the program. The term does not include a
computer program that is included in the definition of goods.
(77) "State" means a State of the United States, the District of Columbia, Puerto
Rico, the United States Virgin Islands, or any territory or insular possession subject to the
jurisdiction of the United States.
(78) "Supporting obligation" means a letter-of-credit right or secondary obligation
that supports the payment or performance of an account, chattel paper, a document, a general
intangible, an instrument, or investment property.
(79) [Reserved.]
(80) "Termination statement" means an amendment of a financing statement which:
(A) identifies, by its file number, the initial financing statement to which it relates;
and
(B) indicates either that it is a termination statement or that the identified financing
statement is no longer effective.
(81) "Transmitting utility" means a person primarily engaged in the business of:
(A) operating a railroad, subway, street railway, or trolley bus;
(B) transmitting communications electrically, electromagnetically, or by light;
(C) transmitting goods by pipeline or sewer;
(D) transmitting or producing and transmitting electricity, steam, gas, or water; or
(E) a combination of any of the foregoing.
(b) Definitions in other Chapters. "Control" as provided in R.S. 10:7-106 and the
following definitions in other Chapters apply to this Chapter:
"Applicant" R.S. 10:5-102.
"Beneficiary" R.S. 10:5-102.
"Broker" R.S. 10:8-102.
"Certificated security" R.S. 10:8-102.
"Check" R.S. 10:3-104.
"Clearing corporation" R.S. 10:8-102.
"Controllable electronic record" R.S. 10:12-102.
"Customer" R.S. 10:4-104.
"Entitlement holder" R.S. 10:8-102.
"Financial asset" R.S. 10:8-102.
"Holder in due course" R.S. 10:3-302.
"Issuer" (with respect to a letter of credit
or letter-of-credit right) R.S. 10:5-102.
"Issuer" (with respect to a security) R.S. 10:8-201.
"Issuer" (with respect to documents of title) R.S. 10:7-102.
"Letter of credit" R.S. 10:5-102.
"Negotiable instrument" R.S. 10:3-104.
"Nominated person" R.S. 10:5-102.
"Note" R.S. 10:3-104.
"Proceeds of a letter of credit" R.S. 10:5-114.
"Protected purchaser" R.S. 10:8-303.
"Prove" R.S. 10:3-103.
"Qualifying purchaser" R.S. 10:12-102.
"Securities account" R.S. 10:8-501.
"Securities intermediary" R.S. 10:8-102.
"Security" R.S. 10:8-102.
"Security certificate" R.S. 10:8-102.
"Security entitlement" R.S. 10:8-102.
"Uncertificated security" R.S. 10:8-102.
(c) Chapter 1 definitions and principles. Chapter 1 contains general definitions and
principles of construction and interpretation applicable throughout this Chapter.
(d) Additional definitions. In this Chapter:
(1) "Agricultural laborer" means an individual holding an agricultural lien securing
payment of wages due him for labor he performed as a worker, thresherman, combineman,
grain drier, or overseer.
(2) "Bailee" means a person having possession of the personal property belonging
to another. "Bailor" means the owner of the personal property.
(3) "Collateral mortgage note" means an instrument that is secured by a collateral
mortgage on real property located in this state and executed for the purpose of being issued,
pledged, or otherwise used as security for another obligation.
(4) "Intangible" means incorporeal.
(5) "Lease" means a contract by which one person gives to another the right of
enjoyment and use of goods for a term in return for a stipulated price. But a usufruct or a
sale, including a sale on approval or a sale or return, or a sale on view or trial, or retention
or creation of a security interest, is not a lease. Unless the context clearly indicates
otherwise, the term includes a sublease.
(6) "Leasehold interest" means the interest of the lessee under a lease.
(7) "Lessee" means a person to whom a lease is granted. Unless the context clearly
indicates otherwise, the term includes a sublessee.
(8) "Lessee in ordinary course of business" means a person that becomes a lessee of
goods in good faith, without knowledge that the lease violates the rights of another person
in the goods, and in the ordinary course from a person, other than a pawnbroker, in the
business of selling or leasing goods of that kind. A lessee in the ordinary course of business
may lease for cash, or by exchange of other property, or on secured or unsecured credit, and
may acquire goods or documents of title under a preexisting lease.
(9) "Lessor" means a person that grants a lease. Unless the context clearly indicates
otherwise, the term includes a sublessor.
(10) "Lien" means a privilege on personal property created by operation of law that
entitles the privileged creditor to be preferred before other creditors.
(11) "Lienholder" means a person that holds a lien.
(12) "Local law" means the law of a jurisdiction not including that jurisdiction's law
of conflict of laws.
(13) "Merchant" means a person who deals in goods of the kind, or otherwise by his
occupation holds himself out as having knowledge or skill particular to the practices or
goods, involved in the transaction, or to whom such knowledge or skill may be attributed by
his employment of an agent, broker, or other intermediary who by his occupation holds
himself out as having such knowledge or skill.
(14) "Mineral rights" means a real right governed by Title 31 of the Louisiana
Revised Statutes of 1950, including mineral servitudes, mineral leases, mineral royalties,
overriding royalties, production payments, and net profits interests.
(15) "Personal property" means movable property.
(16) "Real property" means immovable property and real rights therein, including
standing timber, mineral rights, and leases of immovables.
(17) "Recorded timber conveyance" means a written contract:
(A) by which standing timber is conveyed to, or upon cutting will become owned by,
an identified person other than an owner of the land upon which the timber is standing.
(B) which is executed by a record owner of the land.
(C) which has been recorded in the conveyance records of the parish in which the
land is situated.
(D) which contains a legal description of the land that would be sufficient for
purposes of making a conveyance of the land effective against third persons.
(18) "Sale" means a contract whereby a person transfers ownership of property to
another person for a price in money.
(19) "Tangible" means corporeal.
(20) "Titled motor vehicle" means a vehicle subject to R.S. 32:701, et seq., which
is required to have a certificate of title issued by the Department of Public Safety and
Corrections, office of motor vehicles.

Legislative History

Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 1990, No. 1079, §4, eff. Sept. 1, 1990; Acts 1991, No. 539, §3, eff. Jan. 1, 1992; Acts 1997, No. 1295, §3; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2004, No. 303, §2; Acts 2006, No. 533, §8; Acts 2009, No. 207, §5, eff. Jan. 1, 2010; Acts 2010, No. 378, §3; Acts 2012, No. 450, §1, eff. July 1, 2013; Acts 2014, No. 281, §3, eff. Jan. 1, 2015; Acts 2024, No. 287, §3; Acts 2024, No. 424, §1; Acts 2024, No. 773, §1.