Louisiana House Bill HB466

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 3/26/12
• Engrossed: 4/3/12
• Report Pass: 5/8/12
• Enrolled: 5/15/12
• Chaptered: 5/25/12
• Passed: 5/25/12

Caption

Provides for revision of Civil Code articles relative to the rent of lands and annuities

Impact

The amendments are expected to enhance the enforceability of annuity contracts, particularly through the establishment of specific legal rights related to periodic payments. By defining annuity charges and their management within property transfers, the bill allows these contracts to be effectively recorded and enforced against third parties. This change addresses prior ambiguities in existing laws regarding charging immovable property with obligations from annuity contracts, thereby providing clearer legal recourse for recipients in case of non-payment.

Summary

House Bill 466 primarily modifies the legal provisions governing annuities and related contracts in the Louisiana Civil Code. The bill introduces clear definitions and guidelines for annuity contracts, stipulating that they may involve both natural and juridical persons as recipients of payments. It emphasizes that such contracts can provide for periodic payments for a defined term or for the life of a designated recipient, thereby broadening the scope and flexibility of annuity agreements in the state. The modifications aim to modernize the annuity framework reflecting contemporary practices.

Sentiment

The sentiment surrounding HB 466 appears to be generally positive among advocates for reform in the annuity field, including legal experts and financial institutions. They view the amendments as a significant step toward better protecting the rights of annuity recipients and ensuring smoother transactions involving periodic payments. However, as with any reform, there exists potential opposition from stakeholders who may feel that specific changes could complicate existing arrangements or create unforeseen implications for settled contracts.

Contention

Notable points of contention revolve around the implications of the assignability and heritability of annuity rights and obligations, particularly in the absence of explicit provisions in the contracts. Critics argue that while expanding recipient rights is important, the lack of restrictions might lead to complex legal disputes in cases of succession or assignment. Additionally, the establishment of an annuity charge as a real right over immovable property invites scrutiny regarding how these obligations interact with current mortgage laws and what protections are afforded to both debtors and creditors.