SLS 11RS-81 ENGROSSED Page 1 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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. (8/15/11) 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 SLS 11RS-81 ENGROSSED Page 2 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (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 uniform cancellation affidavit containing a request to cancel, together with9 any additional documents as may otherwise be required by law, shall operate10 as a release and authorization to the clerk of court and ex officio recorder of11 mortgages to cancel and erase from the mortgage records any mortgage or12 vendor's lien inscription described in the uniform cancellation affidavit.13 D. Liability:14 (1) The clerk of court as ex officio recorder of mortgages shall not be15 liable for any damages resulting to any person or entity as a consequence of16 canceling a mortgage in reliance upon a uniform cancellation affidavit17 complying with this Section.18 (2) The affiant shall be liable to and indemnify the clerk of court as ex19 officio recorder of mortgages and any person relying upon the cancellation for20 any claims or damages suffered if the uniform cancellation affidavit contains21 materially false or incorrect statements.22 (3) The preparing, signing, or filing of a uniform cancellation affidavit23 with the knowledge that it contains materially false or incorrect statements shall24 subject the offender to civil and criminal liability under Louisiana law,25 including as set forth in La. R.S. 9:5174, La. R.S. 14:125 and La. R.S. 14:133.26 E. The provisions of this Section shall not be construed to invalidate,27 prohibit, restrict or limit the use of any other method or form otherwise28 SB NO. 24 SLS 11RS-81 ENGROSSED Page 3 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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 UNIFORM CANCELLATION AFFIDAVIT5 (FOR MORTGAGES AND VENDOR'S LIENS)6 7 STATE OF ______________________________________8 PARISH/COUNTY OF ____________________________9 BE IT KNOWN THAT before me, the undersigned Notary Public, appeared:10 (Name)________________(Corporate Title and Name of Entity if Applicable)_______,11 its duly authorized agent hereinafter referred to as affiant, who after first being sworn12 declares that affiant is:13 CHECK ONE BOX ONLY:14 [ ] A notary public requesting cancellation under La. R.S. 9:5167 A. (1), herein declaring15 that affiant or someone under his direction did satisfy the promissory note, and that16 the affiant or someone under his direction (1) received the note marked "Paid in Full"17 from the last holder of the note, and that the note was lost or destroyed while in the18 affiant's custody; or (2) has confirmed that the last holder of the paraphed note19 received payment in full and sent the note but the note was never received, and that20 the affiant has made a due and diligent search for the note, the note cannot be located,21 and sixty days have elapsed since payment or satisfaction of the note.22 [ ] A duly authorized officer of a Louisiana licensed title insurer as defined in La. R.S.23 22:46 of the Louisiana Insurance Code, requesting cancellation under La. R.S. 9:5167B24 (1), herein declaring that all obligations secured by the mortgage or vendor's privilege25 have been satisfied, and that affiant has made a due and diligent search for the lost or26 destroyed instrument which was sufficient to cause a cancellation of the mortgage or27 vendor's privilege, that the lost or destroyed instrument cannot be located, and that28 sixty days have elapsed since payment or satisfaction of the secured obligation.29 [ ] An authorized officer of a title insurance business, the closing notary public, or the30 attorney for the person or entity which made the payment requesting cancellation under31 La. R.S. 9:5167.1, herein declaring on behalf of the mortgagor or an owner of the32 property encumbered by the mortgage that the mortgagee provided a payoff33 statement with respect to the loan secured by the mortgage and that the mortgagee has34 received payment of the loan secured by the mortgage in accordance with the payoff35 statement, as evidenced by (1) a bank check, certified check, or escrow account check36 which has been negotiated by or on behalf of the mortgagee, or (2) other documentary37 evidence of the receipt of payment by the mortgagee, including but not limited to38 verification that the funds were wired to the mortgagee, that more than sixty days39 have elapsed since the date payment was received by the mortgagee and that the40 mortgagee has not returned documentary authorization for cancellation of the41 mortgage; and that the mortgagee has been given at least fifteen days notice in writing42 of the intention to execute and record an affidavit in accordance with La. R.S.43 9:5167.1, with a copy of the proposed affidavit attached to the written notice. Affiant44 declares that he has attached all evidence required by law.45 [ ] An obligee of record requesting cancellation under La. R.S. 9:5168, said obligee46 herein declaring that affiant is the obligee of record of the mortgage or vendor's47 privilege securing a paraphed promissory note and that the note has been lost or48 destroyed and cannot be presented; that the note is paid, forgiven, or otherwise49 satisfied; and that affiant has not sold, transferred, or assigned the note to any other50 person or entity. If affiant is not the Original Obligee of Record, but an Obligee of51 Record by recorded Assignment of the inscription to be cancelled, a list of recorded52 SB NO. 24 SLS 11RS-81 ENGROSSED Page 4 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. assignments is attached.1 2 [ ] An obligee of record requesting release under La. R.S. 9:5169, said obligee declaring3 that affiant is herein acknowledging the satisfaction, releasing or acknowledging the4 extinction of the mortgage or privilege. If affiant is not the Original Obligee of Record,5 but an Obligee of Record by recorded Assignment of the inscription to be cancelled,6 affiant has attached a list of recorded assignments. JUDGMENTS OR LEGAL7 MORTGAGES MAY NOT BE CANCELLED USING THIS FORM.8 [ ] An affiant requesting cancellation under La. R.S. 9:5170, herein declaring that he9 is attaching herewith10 ______ The paraphed obligation marked "PAID" or "CANCELLED"; or11 ______ An authentic act of release conforming to the requirements of La. R.S.12 9:5170(2).13 [ ] A duly authorized officer of a Licensed Financial Institution under La. R.S. 9:5172,14 herein declaring that the institution was the obligee or the authorized agent of the15 obligee of the obligation secured by the mortgage or privilege when the obligation was16 extinguished and that the secured obligation has been paid or otherwise satisfied or17 extinguished; or that the institution is the obligee or authorized agent of the obligee18 of the secured obligation and that it releases the mortgage or privilege and directs the19 recorder to cancel its recordation.20 AFFIANT HEREBY EXPRESSLY REQUESTS, AUTHORIZES, AND21 DIRECTS, in accordance with the provisions of the applicable statute indicated by the22 checked box above and in accordance with the provisions of La. Civil Code Art. 3366,23 that the Clerk of Court and ex officio Recorder of Mortgages for the Parish of24 ______________________ to [ ] FULLY CANCEL, or [ ] PARTIALLY CANCEL the25 following:26 A mortgage or Vendor's privilege:27 Granted/Made by:________________________________________________________28 In favor of:______________________________________________________________29 Instrument dated_____________________ Recorded in _________________ Parish;30 Recorded in MOB _________ FOLIO ________, INSTRUMENT NO. ___________;31 [LEGAL DESCRIPTION OF PROPERTY: SEE ATTACHMENT HERETO32 MADE A PART HEREOF.]33 AFFIANT DECLARES that he has attached property descriptions as required34 by law, and that he is aware that if no property description is attached, this Affidavit35 will be rejected.36 AFFIANT FURTHER DECLARES that if this Affidavit is intended to cancel37 related inscriptions, such as assignments or subordinations, in a parish where the38 clerk allows such cancellations, he has attached a separate list of related inscriptions.39 AFFIANT WARRANTS that affiant has complied with all requirements of40 applicable law, including full or partial discharge of the obligation where the law41 requires.42 AFFIANT AGREES to be liable to and to indemnify the Clerk of Court as ex43 officio recorder of mortgages and any person relying upon the cancellation by this44 affidavit for any claims or damages suffered as a consequence of such reliance if this45 affidavit contains materially false or incorrect statements.46 AFFIANT ACKNOWLEDGES BY HIS SIGNATURE BELOW that the47 contents of this affidavit are true and correct to the best of his knowledge, information,48 and belief, and further that he is aware that knowingly preparing, signing, or filing a49 uniform cancellation affidavit containing materially false or incorrect statements shall50 subject the affiant to civil and criminal liability under Louisiana law, including the51 provisions of La. R.S. 9:5174, La. R.S. 14:125 and La. R.S. 14:133.52 Affiant's Signature: ______________________Printed Name: _____________________53 Company Name:__________________________Title:______________________ _____54 (Its duly authorized agent)55 Mailing Address: ____________________________________________________ _____56 City: ______________________ State : __________________ ZIP: ________________57 SB NO. 24 SLS 11RS-81 ENGROSSED Page 5 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Telephone #:_______________________________ Email: ________________________1 SWORN TO AND SUBSCRIBED before me this__________day of__________,2 20________.3 Notary Signature and Seal:4 Printed Name of Notary: ________________________5 State of Appointment : _____________6 Notary or Bar No.: _____________________7 Commission expires:___________________8 FILER: Fill out below if filer is NOT the affiant:9 REQUEST TO CANCEL10 In accordance with the provisions of La. Civ. Code. Art. 3366, the undersigned11 filer requests the Clerk of Court and ex officio Recorder of Mortgages to file this12 Uniform Cancellation Affidavit and hereby requests the cancellation referenced13 therein.14 Signature:_____________________________15 Printed Name: ___________________________16 Company: _______________________________17 Title:________________________________ (Its duly authorized agent)18 Mailing Address: _____________________________19 City: ________________ State : ______ ZIP: _______20 Telephone #:__________________________Email: _____________________________21 22 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Jerry G. Jones. DIGEST Alario (SB 24) 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 uniform cancellation affidavit containing a request to cancel, 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 SB NO. 24 SLS 11RS-81 ENGROSSED Page 6 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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. Effective August 15, 2011. (Adds R.S. 9:5166) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Judiciary A to the original bill. 1. Changed "of a request to cancel containing the uniform cancellation affidavit" to "of a uniform cancellation affidavit containing a request to cancel".