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Regular Session, 2012
HOUSE BILL NO. 452
BY REPRESENTATIVE ABRAMSON
MORTGAGES: Provides for the deletion of inscriptions on mortgage certificates
AN ACT1
To amend and reenact R.S. 13:4344.1(A)(introductory paragraph), (6), and (7), (D), (E), and2
(F) and to enact R.S. 13:4344.1(G) and (H), relative to inscriptions on mortgage3
certificates; to provide for deletion of inscriptions; to delete antiquated references to4
the recorder of mortgages for Orleans Parish; to provide for technical corrections;5
to provide for inscriptions of cancelled and prescribed mortgages; to provide for6
retroactive application; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 13:4344.1(A)(introductory paragraph), (6), and (7), (D), (E), and (F)9
are hereby amended and reenacted and R.S. 13:4344.1(G) and (H) are hereby enacted to read10
as follows: 11
ยง4344.1. Deletion of inscriptions on mortgage certificates ordered by a sheriff12
A. For immovable property procured pursuant to a judicial sale under a writ13
of fieri facias or a writ of seizure and sale, the clerk of court, or the recorder of14
mortgages for Orleans Parish, or his successor, shall partially cancel from a15
mortgage certificate ordered in connection with a judicial sale the inscription of any16
legal or judicial mortgage, lien, or privilege, appearing on the certificate, only insofar17
as the foreclosed property is concerned, upon the filing of an affidavit executed by18
an officer of a title insurer duly licensed by the Louisiana Department of Insurance.19
The affidavit shall set forth all of the following:20
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(6) A direction from the title insurer to the clerk of court or recorder of1
mortgages to partially cancel from the mortgage certificate the encumbrance2
identified on the affidavit.3
(7) The title insurer agrees to be liable to and defend and indemnify the clerk4
of court or recorder of mortgages, the sheriff, and any person relying upon the5
cancellation by affidavit for any damages that they may suffer as a consequence of6
such reliance if the recorded affidavit contains incorrect statements that cause the7
recorder clerk of court to incorrectly partially cancel on the mortgage certificate8
ordered in connection with the judicial sale the inscription of a mortgage, lien,9
privilege, or other encumbrance from the mortgage certificate.10
* * *11
D. Any person in whose favor a partially canceled inscription was recorded12
shall have a cause of action against the title insurer in the event the mortgage, lien,13
privilege, or other encumbrance which was partially canceled from the clerk's14
mortgage certificate was legally enforceable at the time of the deletion against the15
person or property described in that certificate because the obligor under the legal16
or judicial mortgage, lien, or privilege, was in fact the same person whose property17
was sold. The cause of action created by this Subsection shall prescribe on the same18
date that the cause of action to enforce the underlying legal or judicial mortgage,19
lien, or privilege prescribes.20
E. A title insurer whose officer has signed an affidavit that is provided to the21
clerk of court or the recorder of mortgages pursuant to this Section and that contains22
incorrect statements causing the recorder clerk of court to incorrectly partially cancel23
the inscription of a mortgage or privilege from his certificate is liable to and shall24
defend and indemnify the clerk of court or the recorder of mortgages, the sheriff, and25
any person relying upon the partial cancellation on the mortgage certificate for any26
damages that they may suffer as a consequence of such reliance.27
F. The clerk of court and the recorder of mortgages shall not be liable for any28
damages resulting to any person or entity as a consequence of partially canceling29 HLS 12RS-759 REENGROSSED
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from the certificate a legal or judicial mortgage, lien, or privilege pursuant to an1
affidavit which complies with the provisions of this Section.2
G.(1) It shall not be necessary to delete, cancel, or partially release3
inscriptions that may appear on a mortgage certificate ordered in connection with a4
judicial sale for the following:5
(a) Any assignment, assumption, or modification of a cancelled mortgage.6
(b) Prescribed judicial mortgages which have not been reinscribed or for7
which no notice of pendency of action of a revival action is shown on the mortgage8
certificate.9
(2) The sheriff shall proceed with the judicial sale without regard to the10
inscriptions designated in this Subsection.11
H. The provisions of this Section shall apply retroactively to any inscription12
appearing on any mortgage certificate ordered in connection with a judicial sale.13
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Abramson HB No. 452
Abstract: Provides relative to inscriptions on mortgage certificates and directs the sheriff
to disregard inscriptions of certain cancelled and prescribed mortgages.
Present law provides for cancellation of inscriptions on mortgage certificates and liability
for inscriptions wrongfully cancelled.
Proposed law maintains present law and directs the sheriff to disregard inscriptions of certain
cancelled and prescribed mortgages and proceed with judicial sale. Further removes
antiquated references to the recorder of mortgages of Orleans Parish.
(Amends R.S. 13:4344.1(A)(intro. para.), (6), and (7), (D), (E), and (F); Adds R.S.
13:4344.1(G) and (H))