Louisiana 2011 2011 Regular Session

Louisiana Senate Bill SB24 Introduced / Bill

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Regular Session, 2011
SENATE BILL NO. 24
BY SENATOR ALARIO 
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CIVIL PROCEDURE. Authorizes uniform cancellation affidavit for cancellation of
mortgage and vendor's lien inscriptions.
AN ACT1
To enact R.S. 9:5166, relative to mortgages and vendor's liens; to provide relative to2
cancellation of mortgage and vendor's lien inscriptions; to create and authorize the3
use of a uniform cancellation affidavit for cancellation of mortgage and vendor's lien4
inscriptions; to provide for the contents and effects of such affidavit; to provide5
relative to liability; to provide certain terms, conditions, procedures, and6
requirements, and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 9:5166 is hereby enacted to read as follows: 9
ยง5166. Cancellation of mortgage and vendor's lien inscriptions; uniform10
cancellation affidavit; requirements and effects11
A.  A uniform cancellation affidavit as provided in this Section may be12
used to cancel a mortgage or vendor's lien inscription, except for judgments or13
legal mortgages. The uniform cancellation affidavit may be in lieu of any other14
affidavit otherwise required by law, and no additional affidavit shall be15
necessary for cancellation.16
B. The uniform cancellation affidavit shall:17 SB NO. 24
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(1) Contain the information required by this Section;1
(2) Recite the statutory authorization for the cancellation, any other2
recitations as may be required by law for cancellation, and a declaration that3
the affiant has complied with all requirements of law for the cancellation.4
(3)  Be sworn to and subscribed in the presence of a notary public or5
other properly authorized official, but shall not be required to be an authentic6
or witnessed act.7
C. The filing with the clerk of court and ex-officio recorder of mortgages8
of a request to cancel containing the uniform cancellation affidavit, together9
with any additional documents as may otherwise be required by law, shall10
operate as a release and authorization to the clerk of court and ex-officio11
recorder of mortgages to cancel and erase from the mortgage records any12
mortgage or vendor's lien inscription described in the uniform cancellation13
affidavit.14
D. Liability:15
(1) The clerk of court as ex officio recorder of mortgages shall not be16
liable for any damages resulting to any person or entity as a consequence of17
canceling a mortgage in reliance upon a uniform cancellation affidavit18
complying with this Section.19
(2) The affiant shall be liable to and indemnify the clerk of court as ex20
officio recorder of mortgages and any person relying upon the cancellation for21
any claims or damages suffered if the uniform cancellation affidavit contains22
materially false or incorrect statements.23
(3) The preparing, signing, or filing of a uniform cancellation affidavit24
with the knowledge that it contains materially false or incorrect statements shall25
subject the offender to civil and criminal liability under Louisiana law,26
including as set forth in La. R.S. 9:5174, La. R.S. 14:125 and La. R.S. 14:133.27
E. The provisions of this Section shall not be construed to invalidate,28
prohibit, restrict or limit the use of any other method or form otherwise29 SB NO. 24
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authorized by law for the cancellation of a mortgage or vendor's lien1
inscription.2
F. A uniform cancellation affidavit shall satisfy the requirements of this3
Section if it provides all the information set forth in the following form:4
5
UNIFORM CANCELLATION AFFIDAVIT6
(FOR MORTGAGES AND VENDOR'S LIENS)7
8
STATE OF ______________________________________9
PARISH/COUNTY OF ____________________________10
11
BE IT KNOWN THAT before me, the undersigned Notary Public, appeared:12
(Name)________________(Corporate Title and Name of Entity if Applicable)_______,13
its duly authorized agent hereinafter referred to as affiant, who after first being sworn14
declares that affiant is:15
16
CHECK ONE BOX ONLY:17
[ ] A notary public requesting cancellation under La. R.S. 9:5167 A. (1), herein declaring18
that affiant or someone under his direction did satisfy the promissory note, and that19
the affiant or someone under his direction (1) received the note marked "Paid in Full"20
from the last holder of the note, and that the note was lost or destroyed while in the21
affiant's custody; or (2) has confirmed that the last holder of the paraphed note22
received payment in full and sent the note but the note was never received, and that23
the affiant has made a due and diligent search for the note, the note cannot be located,24
and sixty days have elapsed since payment or satisfaction of the note.25
26
[ ] A duly authorized officer of a Louisiana licensed title insurer as defined in La. R.S.27
22:46 of the Louisiana Insurance Code, requesting cancellation under La. R.S. 9:5167B28
(1), herein declaring that all obligations secured by the mortgage or vendor's privilege29
have been satisfied, and that affiant has made a due and diligent search for the lost or30
destroyed instrument which was sufficient to cause a cancellation of the mortgage or31
vendor's privilege, that the lost or destroyed instrument cannot be located, and that32
sixty days have elapsed since payment or satisfaction of the secured obligation.33
34
[ ] An authorized officer of a title insurance business, the closing notary public, or the35
attorney for the person or entity which made the payment requesting cancellation under36
La. R.S. 9:5167.1, herein declaring on behalf of the mortgagor or an owner of the37
property encumbered by the mortgage that the mortgagee provided a payoff38
statement with respect to the loan secured by the mortgage and that the mortgagee has39
received payment of the loan secured by the mortgage in accordance with the payoff40
statement, as evidenced by (1) a bank check, certified check, or escrow account check41
which has been negotiated by or on behalf of the mortgagee, or (2) other documentary42
evidence of the receipt of payment by the mortgagee, including but not limited to43
verification that the funds were wired to the mortgagee, that more than sixty days44
have elapsed since the date payment was received by the mortgagee and that the45
mortgagee has not returned documentary authorization for cancellation of the46
mortgage; and that the mortgagee has been given at least fifteen days notice in writing47 SB NO. 24
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of the intention to execute and record an affidavit in accordance with La. R.S.1
9:5167.1, with a copy of the proposed affidavit attached to the written notice. Affiant2
declares that he has attached all evidence required by law.3
4
[ ] An obligee of record requesting cancellation under La. R.S. 9:5168, said obligee5
herein declaring that affiant is the obligee of record of the mortgage or vendor's6
privilege securing a paraphed promissory note and that the note has been lost or7
destroyed and cannot be presented; that the note is paid, forgiven, or otherwise8
satisfied; and that affiant has not sold, transferred, or assigned the note to any other9
person or entity. If affiant is not the Original Obligee of Record, but an Obligee of10
Record by recorded Assignment of the inscription to be cancelled, a list of recorded11
assignments is attached.12
13
[ ] An obligee of record requesting release under La. R.S. 9:5169, said obligee declaring14
that affiant is herein acknowledging the satisfaction, releasing or acknowledging the15
extinction of the mortgage or privilege. If affiant is not the Original Obligee of Record,16
but an Obligee of Record by recorded Assignment of the inscription to be cancelled,17
affiant has attached a list of recorded assignments. JUDGMENTS OR LEGAL18
MORTGAGES MAY NOT BE CANCELLED USING THIS FORM.19
20
[ ] An affiant requesting cancellation under La. R.S. 9:5170, herein declaring that he21
is attaching herewith22
       ______ The paraphed obligation marked "PAID" or "CANCELLED"; or23
       ______ An authentic act of release conforming to the requirements of La. R.S.24
9:5170(2).25
26
[ ] A duly authorized officer of a Licensed Financial Institution under La. R.S. 9:5172,27
herein declaring that the institution was the obligee or the authorized agent of the28
obligee of the obligation secured by the mortgage or privilege when the obligation was29
extinguished and that the secured obligation has been paid or otherwise satisfied or30
extinguished; or that the institution is the obligee or authorized agent of the obligee31
of the secured obligation and that it releases the mortgage or privilege and directs the32
recorder to cancel its recordation.33
34
35
AFFIANT HEREBY EXPRESSLY REQUESTS, AUTHORIZES, AND36
DIRECTS, in accordance with the provisions of the applicable statute indicated by the37
checked box above and in accordance with the provisions of La. Civil Code Art. 3366,38
that the Clerk of Court and ex officio Recorder of Mortgages for the Parish of39
______________________ to [ ] FULLY CANCEL, or [  ] PARTIALLY CANCEL the40
following:41
42
A mortgage or Vendor's privilege:43
Granted/Made by:________________________________________________________44
In favor of:______________________________________________________________45
Instrument dated_____________________ Recorded in _________________ Parish;46
Recorded in MOB _________ FOLIO ________, INSTRUMENT NO. ___________;47
48
[LEGAL DESCRIPTION OF PROPERTY: SEE ATTACHMENT HERETO49
MADE A PART HEREOF.]50
51
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AFFIANT DECLARES that he has attached property descriptions as required1
by law, and that he is aware that if no property description is attached, this Affidavit2
will be rejected.3
AFFIANT FURTHER DECLARES that if this Affidavit is intended to cancel4
related inscriptions, such as assignments or subordinations, in a parish where the5
clerk allows such cancellations, he has attached a separate list of related inscriptions.6
AFFIANT WARRANTS that affiant has complied with all requirements of7
applicable law, including full or partial discharge of the obligation where the law8
requires.9
AFFIANT AGREES to be liable to and to indemnify the Clerk of Court as ex10
officio recorder of mortgages and any person relying upon the cancellation by this11
affidavit for any claims or damages suffered as a consequence of such reliance if this12
affidavit contains materially false or incorrect statements.13
AFFIANT ACKNOWLEDGES BY HIS SIGNATURE BELOW that the14
contents of this affidavit are true and correct to the best of his knowledge, information,15
and belief, and further that he is aware that knowingly preparing, signing, or filing a16
uniform cancellation affidavit containing materially false or incorrect statements shall17
subject the affiant to civil and criminal liability under Louisiana law, including the18
provisions of La. R.S. 9:5174, La. R.S. 14:125 and La. R.S. 14:133.19
20
Affiant's Signature: ______________________Printed Name: _____________________21
Company Name:__________________________Title:______________________ _____22
                                                                                                  (Its duly authorized agent)23
Mailing Address: ____________________________________________________ _____24
City: ______________________ State : __________________ ZIP: ________________25
Telephone #:_______________________________ Email: ________________________26
SWORN TO AND SUBSCRIBED before me this__________day of__________,27
20________.28
29
Notary Signature and Seal:30
Printed Name of Notary: ________________________31
State of Appointment : _____________32
Notary or Bar No.: _____________________33
Commission expires:___________________34
35
FILER: Fill out below if filer is NOT the affiant:36
REQUEST TO CANCEL37
In accordance with the provisions of La. Civ. Code. Art. 3366, the undersigned38
filer requests the Clerk of Court and ex officio Recorder of Mortgages to file this39
Uniform Cancellation Affidavit and hereby requests the cancellation referenced40
therein.41
Signature:_____________________________42
Printed Name: ___________________________43
Company: _______________________________44
Title:________________________________                        (Its duly authorized agent)45
Mailing Address: _____________________________46 SB NO. 24
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City: ________________ State : ______ ZIP: _______1
Telephone #:__________________________Email: _____________________________2
3
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry G. Jones.
DIGEST
Proposed law creates uniform cancellation affidavit and provides that it may be used to
cancel a mortgage or vendor's lien inscription, except for judgments or legal mortgages.
Provides that it may be used in lieu of any other affidavit otherwise required by law, and no
additional affidavit shall be necessary for cancellation.
Proposed law sets forth contents and requirements for uniform cancellation affidavit,
including the statutory authorization for the cancellation, any other recitations as may be
required by law for cancellation, and a declaration that the affiant has complied with all
requirements of law for the cancellation.
Proposed law provides that the uniform cancellation affidavit must be sworn to and
subscribed in the presence of a notary public or other properly authorized official, but shall
not be required to be an authentic or witnessed act.
Proposed law provides that the filing with the clerk of court and ex-officio recorder of
mortgages of a request to cancel containing the uniform cancellation affidavit, together with
any additional documents as may otherwise be required by law, shall operate as a release and
authorization to the clerk of court and ex-officio recorder of mortgages to cancel and erase
from the mortgage records any mortgage or vendor's lien inscription described in the
uniform cancellation affidavit.
Proposed law further provides that the clerk of court as ex officio recorder of mortgages
shall not be liable for any damages resulting to any person or entity as a consequence of
canceling a mortgage in reliance upon a uniform cancellation affidavit, and that the affiant
shall be liable to and indemnify the clerk of court as ex officio recorder of mortgages and
any person relying upon the cancellation for any claims or damages suffered if the uniform
cancellation affidavit contains materially false or incorrect statements. Further provides that
the preparing, signing, or filing of a uniform cancellation affidavit with the knowledge it
contains materially false or incorrect statements shall subject the offender to civil and
criminal liability.
Proposed law provides that its provisions shall not be construed to invalidate, prohibit,
restrict or limit the use of any other method or form otherwise authorized by law for the
cancellation of a mortgage or vendor's lien inscription.
Proposed law sets forth form for uniform cancellation affidavit, including identification and
declarations of affiant, legal description of property, agreement to indemnify clerk of court,
and request for cancellation.
(Adds R.S. 9:5166)