§ 6:830 — Security for loan on immovable properties; purchase and sale of property

Louisiana § 6:830

• Jurisdiction: Louisiana
• Title 6: Banks and Banking

Text

§830. Security for loan on immovable properties; purchase and sale of property
A. Except as otherwise provided in this Chapter, every loan on immovable property
shall be secured by a mortgage upon the property, and also, where applicable, accompanied
by a pledge to the association of any shares or savings accounts borrowed upon. Such
mortgage shall provide specifically for full protection to the association with respect to the
loan and additional advances, and the usual insurance risks, taxes, assessments, other
governmental levies, maintenances, and repairs. The mortgage may provide for a pledge of
leases and rents. A declaration of the pledge creates a valid and complete pledge of the
shares or savings accounts and of all future payments or credits thereon.
B. Repealed by Acts 2015, No. 336, §2, eff. Jan. 1, 2016.
C. Repealed by Acts 1995, No. 1087, §5.
D.(1) If an association, to accomplish any of the powers granted it pursuant to this
Chapter, purchases or secures property from any person and afterward sells or disposes of
the same property to a borrower, the association has a privilege of equal rank as the vendor's
privilege upon the property so acquired, sold, and disposed of for the security of the payment
of the money due by the borrower.
(2) An association may contract with any person to acquire or purchase from him any
property and afterward to sell or dispose of the same property to a borrower even though the
agreement is at one and the same time. This contract shall not be considered or treated as a
loan, but as a purchase or acquisition by the association and a sale by the association to the
borrower, and the association, to secure payment of the amount due by the borrower, has a
privilege of equal rank with a vendor of immovable property and enjoys for the protection
of its claim and the enforcement of its loan all the rights, privileges, and securities which are
now accorded by law to the vendor of immovable property.
(3) Repealed by Acts 2015, No. 336, §2, eff. Jan. 1, 2016.
E. In all sales made by associations of property acquired by them for the purpose of
making a loan on the security of such property, the warranties and obligations imposed by
law on vendors shall not apply to such associations.
F. A mortgage granted in favor of a savings and loan association and a vendor's
privilege created in favor of a savings and loan association shall be subject to the rules
provided by Chapter 2 of Title XXII-A of Book III of the Louisiana Civil Code.
G.(1) In all cases where immovable property is sold partly for cash and partly for
credit and the credit portion of the purchase price is represented by a note secured by vendor's
privilege and special mortgage, the note may be made payable to any association doing
business under this Chapter and the association may purchase this note from the vendor.
This note and vendor's lien or mortgage or obligation shall have the same preference and
priority over other liens, charges, privileges, and encumbrances and shall have the same legal
force and effect as if the vendor had sold the property to the association and the association
had thereupon sold the property back to the purchaser, and shall in every regard enjoy the
same rank as the vendor privilege and mortgage created under the provisions of Subsections
A and C of this Section.
(2) There may be inserted in the act of sale any and all provisions applicable to loans
made through such associations and to the vendor's privilege and mortgage held by them,
including a subscription to shares in the association, and the pledge of such shares or any
savings accounts, and the purchaser's agreement to abide by the regulations of the association
as set out in its articles of incorporation and bylaws.
(3) The association may intervene in the act of sale through its proper officer and
acknowledge and accept the undertakings of the purchaser in its favor.
(4) This act of sale with vendor's privilege and mortgage, if recorded within three
working days of its execution, when the registry is required to be made in the parish where
the act was executed, and within five working days, if the registry is required to be made in
any other parish of this state, shall have the same priority with regard to the effective date of
recordation as is accorded vendor's privileges under the provisions of Louisiana Civil Code
Article 3274, without regard to the time for recordation as provided therein.
(5) Repealed by Acts 2015, No. 336, §2, eff. Jan. 1, 2016.
H.(1) All mortgages executed upon immovable property in Louisiana in favor of
associations organized and operating under the laws of the state shall have a rank equal to
that of a vendor's privilege upon immovable property and shall have priority over all other
liens, privileges, encumbrances, and mortgages upon the property, and the improvements and
component parts thereon which are recorded or arise in any manner subsequent to the date
of recordation of the mortgage in favor of the association, including tax privileges of any
nature and character, except ad valorem taxes on immovable property and assessments for
paving.
(2) If any mortgage provided for in this Section is placed on record within three
working days of its execution, when the registry is required to be made in the parish where
the act was executed, and within five working days, if the registry is required to be made in
any other parish of this state, it shall have and enjoy the same priority in regard to the
effective date of such recordation as is accorded vendor's liens under the provisions of
Louisiana Civil Code Article 3274, without regard to the time for recordation as provided
therein.
(3) The associations adopting the procedure set forth in this Section shall have all
of the rights and privileges of a vendor to the same extent and in the same manner as if a sale
to the association, and a sale by the association to a borrower had in fact been consummated,
the intent of this Section being merely to provide an optional procedure without altering in
any manner any of the rights accorded to, and obligations incurred by, associations prior to
the passage of this Section.
I. No mortgage provided for in this Section can be cancelled, removed from the
public records, or in any manner affected by any sale in a succession, liquidation, insolvency,
receivership, bankruptcy, or partition proceedings, unless prior to the application or petition
for the sale, at least ten days written notice of the sale is given by certified or registered mail
to the association in whose favor the mortgage was executed. Waiver of this notice by the
association shall be in writing and shall be filed in the court authorizing or ordering the sale.
In the event the sale is made, the mortgage in favor of the association shall not be made
secondary to and shall not be primed by any costs, fees, or charges of any kind in such
proceeding, except the costs of advertising and selling the property.

Legislative History

Acts 1970, No. 234, §1. Amended by Acts 1977, No. 689, §1; Acts 1981, No. 292, §1; Acts 1981, No. 328, §1; Acts 1983, No. 675, §1; Acts 1985, No. 349, §1, eff. Jan. 1, 1986; Acts 1986, No. 161, §1; Acts 1995, No. 1087, §5; Acts 2015, No. 336, §§1, 2, eff. Jan. 1, 2016.