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Regular Session, 2010
SENATE BILL NO. 361
BY SENATOR SMITH (On Recommendation of the Louisiana State Law Institute)
USUFRUCT. Provides for the continuous revision of the Civil Code Articles on usufruct.
(gov sig)
AN ACT1
To amend and reenact Civil Code Articles 538, 549, 553, 558, 567 through 569, 573 through2
575, 577, 580, 581, 583, 584, 586 through 594, 601, 604, 608, 613, 615, 616, 6183
through 620, and 623 through 625, and to enact Civil Code Articles 568.1, 568.2, and4
568.3, relative to usufruct; to provide for the continuous revision; to provide for the5
general principles; to provide for the capacity to receive; to provide for voting shares6
of stock; to provide for improvements and alterations; to provide for contracts7
affecting liability; to provide for disposition of nonconsumables; to provide for8
obligations and rights; to provide for an effective date; and to provide for related9
matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. Civil Code Articles 538, 549, 553, 558, 567 through 569, 573 through12
575, 577, 580, 581, 583, 584, 586 through 594, 601, 604, 608, 613, 615, 616, 618 through13
620, and 623 through 625 are hereby amended and reenacted, and Civil Code Articles 568.1,14
568.2, and 568.3 are hereby enacted to read as follows:15
Article 538. Usufruct of consumable things16
If the things subject to the usufruct are consumables, the usufructuary17 SB NO. 361
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becomes owner of them. He may consume, alienate, or encumber them as he sees1
fit. At the termination of the usufruct he is bound either to pay to the naked owner2
either the value that the things had at the commencement of the usufruct or to deliver3
to him things of the same quantity and quality.4
* * *5
Article 549. Capacity to receive usufruct6
Usufruct may be established in favor of a natural person or legal entity a7
juridical person.8
* * *9
Article 553. Voting of shares of stock and other rights10
The usufructuary has the right to vote shares of stock in corporations and11
to vote or exercise similar rights with respect to interests in other juridical12
persons, unless otherwise provided.13
* * *14
Article 558. Improvements and alterations15
The usufructuary may make improvements and alterations on the property16
subject to the usufruct at his cost and with the written consent of the naked owner.17
If the naked owner fails or refuses to give his consent, the usufructuary may, after18
notice to the naked owner and with the approval of the proper court, make at his cost19
those improvements and alterations that a prudent administrator would make.20
* * *21
Article 567. Contracts affecting the usufructuary's liability22
The usufructuary may alienate, lease, or encumber his right. All such23
contracts cease of right at the end of the usufruct.24
If the usufructuary leases, alienates, or encumbers his right, he is responsible25
to the naked owner for the abuse that the person with whom he has contracted26
makes of the property.27
Article 568. Disposition of nonconsumable things; payment of tax28
The usufructuary does not have the right to dispose of nonconsumable things29 SB NO. 361
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unless the right has been expressly granted to him. Nevertheless, he may dispose of1
corporeal movables that are gradually and substantially impaired by use, wear, or2
decay, such as equipment, appliances, and vehicles, provided that he acts as a3
prudent administrator. Upon disposition, the usufruct is converted into a usufruct of4
money, and the usufructuary is bound to pay to the naked owner at the end of the5
usufruct the value that the things had at the time of disposition.6
When the usufructuary who has been expressly granted the right to dispose7
of nonconsumable things sells property subject to usufruct, and there is any tax owed8
as a result of the sale, the tax shall be paid from the proceeds of the sale.9
The usufructuary may not dispose of nonconsumable things unless the10
right to do so has been expressly granted to him. Nevertheless, he may dispose11
of corporeal movables that are gradually and substantially impaired by use,12
wear, or decay, such as equipment, appliances, and vehicles, provided that he13
acts as a prudent administrator.14
The right to dispose of a nonconsumable thing includes the rights to15
alienate, lease, and encumber the thing. It does not include, however, the right16
to alienate by donation inter vivos, unless that right is expressly granted.17
Article 568.1.18
If a thing subject to the usufruct is donated inter vivos by the19
usufructuary, he is obligated to pay to the naked owner at the termination of the20
usufruct the value of the thing as of the time of the donation. If a thing subject21
to the usufruct is otherwise alienated by the usufructuary, the usufruct attaches22
to any money or other property received by the usufructuary. The property23
received shall be classified as consumable or nonconsumable in accordance with24
the rules of this Title, and the usufruct shall be governed by those rules subject25
to the terms of the act establishing the original usufruct. If, at the time of the26
alienation, the value of the property received by the usufructuary is less than27
the value of the thing alienated, the usufructuary is bound to pay the difference28
to the naked owner at the termination of the usufruct.29 SB NO. 361
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Comments - 20101
(a) If the property received by the usufructuary is consumable, then under2
the rules of this Title, the usufructuary will be bound to pay to the naked owner at the3
termination of the usufruct the value of the consumables that he received, and under4
the regular rules governing usufruct the usufructuary will become the "owner" of the5
consumable property. See Civil Code Article 538. This will leave open the question6
of whether he may have sold the property for too low a price, and he is always7
subject to the obligation of acting as a prudent administrator. See Civil Code Article8
576 and revision comment (b). If the usufructuary receives property that is9
nonconsumable, the usufruct will always attach to it and the usufructuary will be10
bound to deliver the thing received to the naked owner at the termination of the11
usufruct. See Civil Code Article 539.12
13
(b) The rules expressed in comment (a) are the rules to which Article 568-B14
refers when it states that the usufruct "shall be governed by those rules." This Article15
expressly refers to the act of establishing the original usufruct, because if that act16
granted authority to dispose of nonconsumables, that grant would be a continuing17
grant of authority and would apply to the new nonconsumables that have been18
received.19
20
Article 568.2.21
The right to dispose of a nonconsumable thing includes the right to lease22
the thing for a term that extends beyond the termination of the usufruct. If, at23
the termination of the usufruct, the thing remains subject to the lease, the24
usufructuary is accountable to the naked owner for any diminution in the value25
of the thing at that time attributable to the lease.26
Article 568.3.27
If, at the termination of the usufruct, the thing subject to the usufruct is28
burdened by an encumbrance established by the usufructuary to secure an29
obligation, the usufructuary is bound to remove the encumbrance.30
Comment - 201031
32
In accounting for any "diminution" in value of a thing attributable to an33
encumbrance placed on it by the usufructuary, it is not intended that any diminution34
in value be considered attributable to such an encumbrance if the debt secured by35
that encumbrance was incurred in connection with the refinancing of a pre-existing36
debt of an equal or greater amount that was previously secured by an encumbrance37
on the thing. In other words, the article is intended to cover new debts and not the38
refinancing of existing ones.39
40
Article 569. Duties with regard to things gradually or totally impaired41
If the usufructuary has not disposed of corporeal movables that are by their42
nature impaired by use, wear, or decay, he is bound to restore deliver them to the43
owner in the state in which they may be at the end of the usufruct.44 SB NO. 361
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The usufructuary is relieved of this obligation if the things are entirely worn1
out by normal use, wear, or decay.2
* * *3
Article 573. Dispensation of security by operation of law4
A. Security may be dispensed with by ex operation of law when is dispensed5
with when any of the following occur:6
(1) a A person has a legal usufruct under Civil Code Article 223 or 3252.7
B. Security is dispensed with by operation of law when a (2) A surviving8
spouse has a legal usufruct under Civil Code Article 890 unless the naked owner is9
not a child of the usufructuary or unless the naked owner, although a child of the10
usufructuary, is a forced heir of the decedent. In the latter case, if the naked owner11
is a child of the usufructuary and is also a forced heir of the decedent, the naked12
owner may obtain security but only to the extent of his legitime.13
C. Security is dispensed with by operation of law when a (3) A parent has a14
legal usufruct under Civil Code Article 891 unless the naked owner is not a child of15
the usufructuary.16
D. Security is dispensed with by operation of law when a (4) A surviving17
spouse has a legal usufruct under Civil Code Article 2434 unless the naked owner18
is a child of the decedent but not a child of the usufructuary.19
B. Sellers or donors A seller or donor of property under reservation of20
usufruct is not required to give security.21
Article 574. Delay in giving security22
A delay of in giving security does not deprive the usufructuary of the fruits23
derived from the property since the commencement of the usufruct.24
Article 575. Failure to give security25
If the usufructuary does not give security, a proper court may order that the26
property be delivered to an administrator appointed in accordance with Articles 311127
through 3113 of the Code of Civil Procedure for administration on behalf of the28
usufructuary. The administration terminates if the usufructuary gives security.29 SB NO. 361
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* * *1
Article 577. Liability for repairs2
The usufructuary is responsible for ordinary maintenance and repairs for3
keeping the property subject to the usufruct in good order, whether the need for these4
repairs arises from accident or force majeure, from the normal use of the things, or5
from his fault or neglect.6
The naked owner is responsible for extraordinary repairs, unless they have7
become necessary as a result of the usufructuary's fault or neglect in which case the8
usufructuary is bound to make them at his cost.9
* * *10
Article 580. Reimbursement for necessary repairs11
If, after the usufruct commences and before the usufructuary is put in12
possession, the naked owner incurs necessary expenses or makes repairs for which13
the usufructuary is responsible, he the naked owner has the right to claim the cost14
thereof from the usufructuary and may retain the possession of the things subject to15
the usufruct until he is paid.16
Article 581. Liability for necessary expenses17
The usufructuary is answerable for all expenses that became become18
necessary for the preservation and use of the property after the commencement of the19
usufruct.20
* * *21
Article 583. Ruin from accident, or decay force majeure or age22
Neither the usufructuary nor the naked owner is bound to restore property23
that has been totally destroyed through accident , force majeure, or because of age.24
If the naked owner elects to restore the property or to make extraordinary25
repairs, he must shall do so within a reasonable time and in the manner least26
inconvenient and onerous for the usufructuary.27
Article 584. Annual Periodic charges28
The usufructuary is bound to pay the annual periodic charges, such as29 SB NO. 361
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property taxes, that may be imposed, during his enjoyment of the usufruct on the1
property subject to the usufruct, such as property taxes.2
* * *3
Article 586. Liability for debts; usufruct inter vivos4
When the usufruct is established inter vivos, the usufructuary is not liable for5
debts of the grantor, but if the debt is secured by an encumbrance of the thing6
subject to the usufruct, the thing may be sold for the payment of the debt. When7
the property subject to the usufruct is burdened with a mortgage, pledge, or privilege,8
the usufructuary may discharge the indebtedness and may claim reimbursement only9
for the capital he has expended.10
In the case of a gratuitous usufruct, the action for reimbursement shall lie11
against the naked owner at the end of the usufruct, subject to the provisions12
contained in the title: Of donations inter vivos and mortis causa. In the case of an13
onerous usufruct, the action shall lie against the grantor, subject to the provisions14
contained in the title: Sale.15
Article 587. Liability for debts; usufruct mortis causa16
When the usufruct is established mortis causa, the position of the17
usufructuary relative to the payment of the debts of the succession depends upon18
whether the usufruct is universal, under universal title, or under particular title. The19
usufruct of an entire succession is universal, of a fraction thereof is under universal20
title, and of individually determined things is under particular title. When the21
usufruct is a usufruct mortis causa, the usufructuary is not liable for estate22
debts, but the property subject to the usufruct may be sold for the payment of23
estate debts, in accordance with the rules provided for the payment of the debt24
or debts of an estate in Book III of this Code.25
Article 588. Usufruct under particular title Discharge of debt on encumbered26
property by inter vivos usufructuary27
The legatee of a usufruct under particular title is not liable for the debts of the28
succession. When the property subject to the usufruct is burdened with a mortgage,29 SB NO. 361
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pledge, or privilege, the usufructuary may discharge the indebtedness and may claim1
reimbursement only for the capital he has expended. The action for reimbursement2
shall lie against the naked owner at the end of the usufruct, subject to the provisions3
contained in the title: Of donations inter vivos and mortis causa. When property4
subject to an inter vivos usufruct was encumbered to secure a debt before the5
commencement of the usufruct, the usufructuary may advance the funds needed6
to discharge the indebtedness. If he does so, the naked owner shall reimburse7
the usufructuary, without interest, at the termination of the usufruct, for the8
principal of the debt he has discharged, and for any interest he has paid that9
had accrued on the debt before the commencement of the usufruct.10
Art. 589. Universal usufruct and usufruct under universal title Discharge of debt11
on encumbered property by mortis causa usufructuary12
Neither the universal usufructuary nor the usufructuary under universal title13
is liable for the debts of the succession. Nevertheless, the property subject to their14
usufruct may be seized and sold for the payment of succession debts. If the mortis15
causa usufructuary advances funds to discharge on an estate debt charged to16
the property subject to the usufruct, the naked owner shall reimburse the17
usufructuary, without interest, at the termination of the usufruct, but only to18
the extent of the principal of the debt he has discharged and for any interest he19
has paid that had accrued on the debt before the commencement of the20
usufruct.21
Article 590. Sale of property to pay succession debts Encumbered property;22
discharge of debt on encumbered property by naked owner23
When it is necessary to satisfy a creditor of the succession, the succession24
representative, with the authorization of the proper court or the universal successor,25
may sell so much of the property subject to a universal usufruct or usufruct under26
universal title as may be required to yield a sum for the discharge of the27
indebtedness. The usufructuary may prevent the sale by advancing the funds needed28
in accordance with the following provisions. If the usufructuary fails or refuses29 SB NO. 361
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to advance the funds needed to discharge a debt secured by property subject to1
the usufruct, or an estate debt that is charged to the property subject to the2
usufruct, the naked owner may advance the funds needed. If he does so, the3
naked owner may demand the usufructuary pay him interest during the period4
of the usufruct. If the naked owner does not advance the funds, he may demand5
that all or part of the property be sold as needed to discharge the debt.6
Article 591. Advance of sums; measure of liability Continuation of usufruct after7
sale of property8
The universal usufructuary must advance the funds needed for the discharge9
of all the debts of the succession.10
The usufructuary under universal title must contribute to the payment of the11
debts of the succession in proportion to the value of the property subject to the12
usufruct. If property subject to the usufruct is sold to pay an estate debt, or a13
debt of the grantor, the usufruct attaches to any proceeds of the sale of the14
property that remain after payment of the debt.15
Article 592. Return of capital principal; payment of interest Multiple16
usufructuaries, contribution to payment of estate debts17
When the usufructuary advances funds needed for the discharge of the debts18
of the succession he shall be reimbursed without interest at the end of the usufruct.19
When the usufructuary does not make such an advance, the universal successor may20
make the necessary advance, for which the usufructuary shall pay interest during the21
period of the usufruct, or sell a part of the property subject to the usufruct. If there22
is more than one usufructuary of the same property, each contributes to the23
payment of estate debts that are charged to the property in proportion to his24
enjoyment of the property. If one or more of the usufructuaries fails to advance25
his share, those of them who advance the funds shall have the right to recover26
the funds they advance from those who do not advance their shares.27
Article 593. Discharge of legacy of annuity28
The legacy of an annuity must be acquitted wholly by the universal29 SB NO. 361
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usufructuary. If the legacy of the usufruct is under universal title, it must be1
acquitted by the usufructuary in proportion to his enjoyment. Unless there is a2
governing testamentary disposition, the legacy of an annuity that is chargeable3
to property subject to a usufruct is payable first from the fruits and products4
of the property subject to the usufruct and then from the property itself.5
Article 594. Court costs; expenses of litigation6
Court costs in actions concerning the property subject to the usufruct are7
taxed in accordance with the rules of the Code of Civil Procedure. Expenses of8
litigation other than court costs are apportioned between usufructuaries and naked9
owners in accordance with the ensuing articles following Articles.10
* * *11
Article 601. Removal of improvements12
The usufructuary may remove all improvements he has made, subject to the13
obligation of restoring the property to its former condition. He may not claim14
compensation reimbursement from the owner for improvements that he does not15
remove or that cannot be removed.16
* * *17
Article 604. Servitudes18
The naked owner may establish real rights on the property subject to the19
usufruct, provided that they may be exercised without injury to the usufructuary20
impairing the usufructuary's rights.21
* * *22
Article 608. Dissolution of juridical person; thirty year limitation23
A usufruct established in favor of a legal entity other than a natural person24
terminates when the entity ceases to exist, or upon the lapse of thirty years from the25
date of the commencement of the usufruct. juridical person terminates if the26
juridical person dissolved or liquidated, but not if the juridical person is27
converted, merged or consolidated into a successor juridical person. In any28
event, a usufruct in favor of a juridical person shall terminate upon the lapse29 SB NO. 361
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of thirty years from the date of the commencement of the usufruct. This Article1
shall not apply to a juridical person in its capacity as the trustee of a trust.2
Comment - 20103
The last sentence explains that a trust is not itself a juridical person and4
therefore the Article does not apply to it. A trust is a "relationship." La. R.S.5
9:1731. Nevertheless, the trustee may be a corporate or institutional trustee which6
a juridical person and it is intended this article not affect the trust in that event.7
8
* * *9
10
Article 613. Loss, extinction, or destruction of property11
The usufruct of nonconsumables terminates by the permanent and total loss,12
extinction, or destruction through accident, force majeure or decay of the property13
subject to the usufruct.14
* * *15
16
Article 615. Change of the form of property17
When property subject to usufruct changes form without any an act of the18
usufructuary, the usufruct does not terminate even though the property can no longer19
serve the use for which it was originally destined.20
When property subject to usufruct is converted into money or other property21
without an act of the usufructuary, as in a case of expropriation of an immovable or22
liquidation of a corporation, the usufruct does not terminate but terminates as to the23
property converted and attaches to the money or other property received by the24
usufructuary.25
Article 616. Sale or exchange of the property; taxes26
When property subject to usufruct is sold or exchanged, whether in an action27
for partition or by agreement between the usufructuary and the naked owner or by28
a usufructuary who has the power to dispose of nonconsumable property, the29
usufruct terminates as to the nonconsumable property sold or exchanged, but30
as provided in Article 568, the usufruct attaches to the proceeds of the sale money31
or other property received by the usufructuary, unless the parties provide agree32
otherwise. Any tax or expense incurred as the result of the sale or exchange33
shall be paid from the proceeds of the sale or exchange, and shall be deducted34 SB NO. 361
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from the amount due by the usufructuary to the naked owner at the termination1
of the usufruct.2
* * *3
Article 618. Investment of money Security for proceeds4
In cases governed by Articles 614, 615, 616, and the first sentence of Article5
617, the naked owner may demand, within one year from receipt of the proceeds by6
the usufructuary that the money be safely invested subject to the right of the7
usufructuary usufructuary give security for the proceeds. If such a demand is8
made, and the parties cannot agree, the nature of the investment security shall be9
determined by the court. This article Article does not apply to corporeal movables10
referred to in the second sentence of Article 568, or to property disposed of by the11
usufructuary pursuant to the power to dispose of nonconsumables if the grantor12
of the usufruct has dispensed with the security.Article 619. Changes made by13
the testator14
A usufruct by donation mortis causa is not considered as revoked merely15
because the testator has made changes in the property after the date of his will16
testament. The effect of the legacy is determined by application of the rules17
contained in the title: Of donations inter vivos and mortis causa.18
Article 620. Sale of the property or of the usufruct19
Usufruct terminates by the enforcement of a mortgage placed an20
encumbrance established upon the property prior to the creation of the usufruct to21
secure a debt. The usufructuary may have an action against the grantor of the22
usufruct or against the naked owner under the provisions established in the third23
section of this chapter Chapter.24
The sale of the property by the naked owner after the usufruct has been25
created or the enforcement of a mortgage placed upon the property by the naked26
owner after the creation of the usufruct does not affect the right of the usufructuary.27
The judicial sale of the usufruct by creditors of the usufructuary deprives the28
usufructuary of his enjoyment of the property but does not terminate the usufruct.29 SB NO. 361
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Comment - 20101
The elimination of Paragraph two of Article 620 is not intended to effect a2
change in the law. The subject is already covered in Article 603.3
4
* * *5
6
Article 623. Abuse of the enjoyment ; consequences7
A The usufruct may be terminated by the naked owner if the usufructuary8
commits waste, alienates things without authority, neglects to make ordinary repairs,9
or abuses his enjoyment in any other manner.10
Article 624. Consequences of abuse Security to prevent termination11
In the cases covered by the preceding article Article, the court may decree12
termination of the usufruct or decree that the property be delivered to the naked13
owner on the condition that he shall pay to the usufructuary a reasonable annuity14
until the end of the usufruct. The amount of the annuity shall be based on the value15
of the usufruct. 16
The usufructuary may prevent termination of the usufruct or delivery of the17
property to the naked owner by giving security to insure that he will take appropriate18
corrective measures within a period fixed by the court.19
Article 625. Intervention by creditors of the usufructuary20
21
A creditor of the usufructuary may intervene and may prevent termination of22
the usufruct or and delivery of the property to the naked owner by offering to repair23
the damages caused by the usufructuary and by giving security for the future.24
Section 2. This Act shall become effective upon signature by the governor or, if not25
signed by the governor, upon expiration of the time for bills to become law without signature26
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If27
vetoed by the governor and subsequently approved by the legislature, this Act shall become28
effective on the day following such approval.29 SB NO. 361
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Angela Lockett De Jean.
DIGEST
Present law (C.C. Art. 549) provides that a usufruct may be established in favor of a natural
person or a legal entity.
Proposed law changes "legal entity" to "juridical person" to be consistent with the definition
of "person" in Civil Code Article 24.
Present law (C.C. Art. 553) provides that the usufructuary has the right to vote shares of
stock.
Proposed law provides that the usufructuary has the right to exercise rights in other juridical
entities that are similar to voting rights in corporations.
Present law (C.C. Art. 567) provides that the usufructuary may enter contracts affecting the
usufruct.
Proposed law retains present law and provides that the usufructuary is responsible to the
naked owner for abuse of the property.
Present law (C.C. Art. 568) provides rules for the disposition of nonconsumables by the
usufructuary.
Proposed law (C.C. Art. 568 - 568.3) provides more specific rules relative to the
usufructuary's right to dispose of nonconsumables.
Present law (C.C. Art. 573) provides that certain legal usufructuaries, as well as sellers or
donors of property with reservation of usufruct, are dispensed from providing security by
operation of law.
Proposed law retains present law, but reorganizes and rearranges the Article.
Present law (C.C. Art. 577) provides that the usufructuary is responsible for ordinary repairs
whether the need for repairs arises from accident, the normal use of the thing, or the
usufructuary's fault or neglect.
Proposed law retains present law and adds force majeure as a cause for need of ordinary
repairs for which the usufructuary is responsible.
Present law (C.C. Art. 583) provides that neither the usufructuary nor the naked owner is
bound to restore property totally destroyed by accident or age.
Proposed law retains present law and adds force majeure to the list of causes of destruction
of property for which restoration is not mandatory.
Present law (C.C. Art. 584) provides that the usufructuary is bound to pay annual charges
imposed on the property.
Proposed law provides that the usufructuary is liable for periodic charges that may be
imposed on the property.
Present law (C.C. Art. 586) provides that an inter vivos usufructuary is not liable for the
debts of the grantor. SB NO. 361
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law retains present law and provides an exception that if the debt is secured by an
encumbrance of the thing subject to the usufruct, it may be sold for the payment of the debt.
Present law (C.C. Art. 587) provides that in a mortis causa usufruct the usufructuary's
obligation relative to payment of the debts of the succession depends on whether the
usufructuary is universal, under universal title or under particular title.
Proposed law revises the language of the article in order to coordinate with the revision of
the law of successions. It does not change the law, inasmuch as the classifications expressed
in the article have already been eliminated.
Present law (C.C. Art. 588) provides rules for the discharge of a mortgage, pledge, or
privilege by the usufructuary under particular title and the usufructuary's right to claim
reimbursement from the naked owner.
Proposed law provides rules for discharge of encumbrances on the property by an inter vivos
usufructuary. Allows the usufructuary to obtain reimbursement for any interest paid that
accrued prior to the commencement of the usufruct.
Present law (C.C. Art. 589) provides that neither the universal usufructuary nor the
usufructuary under universal title is liable for the payment of succession debts.
Proposed law provides rules for discharge of a debt on encumbered property by a mortis
causa usufructuary. It does not change present law because the classifications expressed in
the article have already been eliminated.
Present law (C.C. Art. 590) provides rules for selling property subject to a universal usufruct
or usufruct under universal title to pay succession debts.
Proposed law provides that in the case of encumbered property, the naked owner may
advance the funds if the usufructuary refuses to do so and demand that the usufructuary pay
interest during the period of the usufruct.
Present law (C.C. Art. 591) provides that the universal usufructuary must advance the
necessary funds to pay the debts of the succession.
Proposed law provides that if property subject to the usufruct is sold to pay debts, the
usufruct attaches to the proceeds of the sale remaining after the debts are paid. It does not
change present law because the classification of universal usufructuary expressed in the
article have already been eliminated.
Present law (C.C. Art. 592) provides that when the usufructuary advance funds to pay
succession debts he shall be reimbursed at the end of the usufruct.
Proposed law provides rules for the payment of succession debts when there are multiple
usufructuaries.
Proposed law provides rules for discharge of a debt on encumbered property by a mortis
causa usufructuary. It does not change present law, because the classifications expressed in
the article has already been eliminated.
Present law (C.C. Art. 593) provides that the legacy of an annuity is to be discharged by the
universal usufructuary.
Proposed law provides that a legacy of an annuity chargeable to property subject to the
usufruct is to be paid according to a payment order set forth in proposed law.
Present law (C.C. Art. 601) provides that the usufructuary may remove improvements made SB NO. 361
SLS 10RS-569 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
by him, subject to the obligation of restoring the property to its former condition and he may
not claim compensation for improvements that he does not or cannot remove.
Proposed law provides that the usufructuary may not claim reimbursement for improvements
that he does not or cannot remove.
Present law (C.C. Art. 604) provides that the naked owner may establish real rights on the
property without impairing the rights of the usufructuary.
Proposed law restricts the impairment of the rights of a usufructuary.
Present law (C.C. Art. 608) provides that a usufruct in favor of a legal entity cannot exceed
30 years.
Proposed law changes the terminology from legal entity to juridical person.
Present law (C.C. Art. 613) provides that a usufruct of nonconsumables terminates by loss
of the property due to accident or decay.
Proposed law adds force majeure to the causes of loss of property for which usufruct
terminates.
Present law (C.C. Art. 615) provides rules regarding changes in the form of the property
subject to the usufruct.
Proposed law retains present law, but provides that when the property changes form, the
usufruct attaches to the new form received by the usufructuary.
Present law (C.C. Art. 616) provides that when property is sold in an action for partition or
by agreement between the usufructuary and the naked owner, the usufruct attaches to the
proceeds.
Proposed law provides for situations not addressed under present law.
Present law (C.C. Art. 618) gives the naked owner the right to demand that cash proceeds
received by the usufructuary be invested in certain cases.
Proposed law provides that the naked owner has the right to demand that the usufructuary
give security for the proceeds.
Present law (C.C. Art. 619) provides that a usufruct mortis causa is not considered revoked
by changes in the property made by the testator.
Proposed law retains present law.
Present law (C.C. Art. 620) provides that usufruct terminates by the enforcement of a
mortgage on the property subject to the usufruct.
Proposed law provides that usufruct terminates by the enforcement of any encumbrance
established upon the property prior to the creation of the usufruct.
Present law (C.C. Art. 625) provides rules governing the right of the usufructuary's creditors
to intervene in certain cases.
Proposed law retains present law. SB NO. 361
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends C.C. Arts. 538, 549, 553, 558, 567-569, 573-575, 577, 580, 581, 583, 584, 586-
594, 601, 604, 608, 613, 615, 616, 618-620, and 623-625; adds C.C. Arts. 568.1, 568.2, and
568.3)