§ 32:710 — Security interests; priority; notation on certificate

Louisiana § 32:710

• Jurisdiction: Louisiana
• Title 32: Levees

Text

§710. Security interests; priority; notation on certificate
A. A security interest covering a titled motor vehicle subject to this Chapter shall be
perfected as of the time the financing statement is received by the Department of Public
Safety and Corrections, so long as such receipt subsequently is validated by the secretary of
the Department of Public Safety and Corrections.
B. The secretary shall, upon the request of any person, issue a certification whenever
the financing statement is delivered to his office. Such certification receipt may include one
or more security agreement applications.
C. Security interests affecting titled motor vehicles, perfected by filing with the
Department of Public Safety and Corrections, office of motor vehicles shall take priority in
accordance with Chapter 9 of the Louisiana Commercial Laws.
D. The holders of a security interest on motor vehicles who expressly or impliedly
consent to such vehicles being placed on sale by the owners thereof in the state of Louisiana
in the ordinary course of business shall be precluded from asserting the said security interest
created by it against bona fide retail purchasers in actual good faith of said vehicles. Holders
of such security interest shall be deemed to have impliedly consented to sales of the property
free and clear of such security interest to bona fide retail purchasers in actual good faith
whenever the debtor is a dealer duly licensed to sell the type of vehicles covered by the floor
plan mortgage. Such consent may not be negated or withheld by any express provision in
the security agreement when the debtor holds such an occupational license. For purposes of
this Section, a bona fide retail purchaser in actual good faith shall be deemed to be any
person, firm, partnership or corporation purchasing a vehicle, for individual or business use
and not for resale from a licensed dealer, who does not in fact know of a security interest
existing on the property purchased; however, the holders of security interests on vehicles
who expressly or impliedly consent to such vehicles being placed on sale by the owner
thereof in the ordinary course of business shall not be precluded from asserting said security
interests created by it against group or bulk purchases whether said purchase is in good faith
or not.
E. The holder of a security interest covering a vehicle, upon presentation of a
multiple original or certified copy of a multiple original, or photographic copy of the debtor's
security agreement or financing statement, together with any respective certificate of title
issued in this state or, if no certificate of title exists on such vehicle in this state, together
with a proper application for certificate of title pursuant to the provisions of this Chapter, and
the fee prescribed by law, may have a notation of such security interest made on the face of
such certificate of title in the order in which it was filed. The commissioner shall enter said
notation over his signature and seal of office, and he also shall note such security interest and
the date receipt thereof was validated, on the duplicate of said certificate in his file. The
commissioner also shall indicate by appropriate notation on the instrument itself the fact that
such security interest has been noted on the certificate of title.
F. When such security interest is discharged, the requirements of R.S. 32:708 shall
be complied with.

Legislative History

Acts 1950, No. 342, §13. Amended by Acts 1952, No. 121, §1; Acts 1954, No. 480, §1; Acts 1960, No. 33, §1; Acts 1960, No. 265, §2; Acts 1972, No. 771, §5; Acts 1975, No. 747, §1; Acts 1978, No. 519, §1; Acts 1978, No. 728, §2, eff. Jan. 1, 1979; Acts 1979, No. 210, §1; Acts 1981, No. 306, §2; Acts 1983, No. 419, §1; Acts 1985, No. 964, §1; Acts 1986, No. 193, §1; Acts 1989, No. 137, §11, eff. Sept. 1, 1989; Acts 1990, No. 1079, §5, eff. Sept. 1, 1990; Acts 2001, No. 128, §12, eff. July 1, 2001; Acts 2004, No. 303, §3.