§ 9:4402 — Right of pledgee to cash proceeds of rent

A. Unless otherwise agreed, a pledge of the lessor's interest in the rents of an immovable encumbers any identifiable cash proceeds of rent, such as money, checks, deposit accounts, or the like.
B. The right of a pledgee to proceeds of rent deposited into a deposit account maintained with a financial institution are subject to the rights of the following persons:
(1) The financial institution with which the deposit account is maintained.
(2) A transferee of funds from the deposit account, unless the transferee acts in collusion with the pledgor in violating the rights of the pledgee.
(3) A secured party holding a security interest perfected by control of the deposit account in accordance with R.S. 10:9-104.
(4) Another pledgee holding a superior pledge of the rent.
C. Notwithstanding Subsection B of this Section, the right of a pledgee to collections of rent deposited into a deposit account maintained by him or for his benefit is superior to the right of another pledgee to those collections, unless the pledgee who collected the rent has an obligation to account for the collections to the other pledgee under Civil Code Article 3173.

Legislative History

Acts 2014, No. 281, §2, eff. Jan. 1, 2015.