§ 9:5385 — Satisfaction of mortgage; production of promissory note or release for

§5385. Satisfaction of mortgage; production of promissory note or release for
cancellation; liability
A. When the obligation secured by a mortgage has been fully satisfied, the
mortgagee, the servicing agent, or any holder of the note shall, within thirty days of
receipt of written demand by the person providing full satisfaction, produce the
satisfied promissory note or an instrument of release in a form sufficient to bring
about the cancellation of the inscription of the recorded mortgage to the person
providing full satisfaction. However, if the note is held by a federal agency or
instrumentality, or a federally sponsored or supported lender, or any nonoriginating
secondary mortgage market lender domiciled outside the state of Louisiana, the
holder of the note shall, within sixty days after receipt of notice of the satisfaction
from the servicing agent, produce the satisfied promissory note or an instrument of
release to the servicing agent.
B. If the mortgagee, the servicing agent, or any holder of the note fails to
produce the satisfied promissory note or an instrument of release in a form sufficient
to bring about cancellation of the mortgage within thirty days after receipt of written
demand by the person providing full payment of the balance of the note, the
mortgagee and the servicing agent or the mortgagee and any holder of the note shall
be liable in solido to the person providing full satisfaction for all damages and costs
resulting therefrom, including reasonable attorney fees. However, if the note is held
by a federal agency or instrumentality, or a federally sponsored or supported lender,
or any nonoriginating secondary mortgage market lender domiciled outside the state
of Louisiana, the servicing agency shall, within thirty days of receipt of the satisfied
promissory note or an instrument of release from the holder of the note, produce the
note or instrument to the person providing full satisfaction.
C. For purposes of this Section, "person" shall include the mortgagor acting
in his own behalf, or a notary public or any person, firm, or corporation acting in
place of or on behalf of the mortgagor.

Legislative History

Acts 1986, No. 974, §1; Acts 1987, No. 705, §1; Acts 1992, No. 647, §1; Acts 1995, No. 1087, §3.