ENROLLED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 452
BY REPRESENTATIVE ABRAMSON
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), relative to inscriptions on mortgage certificates;3
to provide for deletion of inscriptions; to delete antiquated references to the recorder4
of mortgages for Orleans Parish; to provide for technical corrections; to provide for5
inscriptions of cancelled and prescribed mortgages; to provide for prospective6
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) is hereby enacted to read as10
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
* * *21
(6) A direction from the title insurer to the clerk of court or recorder of22
mortgages to partially cancel from the mortgage certificate the encumbrance23
identified on the affidavit.24 ENROLLEDHB NO. 452
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(7) The title insurer agrees to be liable to and defend and indemnify the clerk1
of court or recorder of mortgages, the sheriff, and any person relying upon the2
cancellation by affidavit for any damages that they may suffer as a consequence of3
such reliance if the recorded affidavit contains incorrect statements that cause the4
recorder clerk of court to incorrectly partially cancel on the mortgage certificate5
ordered in connection with the judicial sale the inscription of a mortgage, lien,6
privilege, or other encumbrance from the mortgage certificate.7
* * *8
D. Any person in whose favor a partially canceled inscription was recorded9
shall have a cause of action against the title insurer in the event the mortgage, lien,10
privilege, or other encumbrance which was partially canceled from the clerk's11
mortgage certificate was legally enforceable at the time of the deletion against the12
person or property described in that certificate because the obligor under the legal13
or judicial mortgage, lien, or privilege, was in fact the same person whose property14
was sold. The cause of action created by this Subsection shall prescribe on the same15
date that the cause of action to enforce the underlying legal or judicial mortgage,16
lien, or privilege prescribes.17
E. A title insurer whose officer has signed an affidavit that is provided to the18
clerk of court or the recorder of mortgages pursuant to this Section and that contains19
incorrect statements causing the recorder clerk of court to incorrectly partially cancel20
the inscription of a mortgage or privilege from his certificate is liable to and shall21
defend and indemnify the clerk of court or the recorder of mortgages, the sheriff, and22
any person relying upon the partial cancellation on the mortgage certificate for any23
damages that they may suffer as a consequence of such reliance.24
F. The clerk of court and the recorder of mortgages shall not be liable for any25
damages resulting to any person or entity as a consequence of partially canceling26
from the certificate a legal or judicial mortgage, lien, or privilege pursuant to an27
affidavit which complies with the provisions of this Section.28 ENROLLEDHB NO. 452
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G.(1) It shall not be necessary to delete, cancel, or partially release1
inscriptions that may appear on a mortgage certificate ordered in connection with a2
judicial sale for the following:3
(a) Any assignment, assumption, or modification of a canceled mortgage.4
(b) Prescribed judicial mortgages which have not been reinscribed or for5
which no notice of pendency of action of a revival action is shown on the mortgage6
certificate.7
(2) The sheriff shall proceed with the judicial sale without regard to the8
inscriptions designated in this Subsection.9
Section 2. The provisions of this Act shall be given prospective application only.10
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: