HLS 12RS-1156 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 681
BY REPRESENTATIVE LEGER
ENERGY: Provides relative to energy efficiency or renewable energy improvement loans
AN ACT1
To amend and reenact R.S. 33:130.812(B)(10)(a), relative to sustainable energy financing2
districts; to provide relative to financing for projects in such districts; to provide3
relative to program loans; to provide terms, conditions, and requirements of such4
loans; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 33:130.812(B)(10)(a) is hereby amended and reenacted to read as7
follows:8
ยง130.812. Financing for projects9
* * *10
B.11
* * *12
(10)(a) Where an energy efficiency or renewable energy improvements loan13
in the amount of one hundred thousand dollars or more is proposed for a commercial14
property and that property is encumbered by a mortgage, at least thirty days prior to15
entering into a financing agreement, the property owner shall provide notice of the16
owner's intent to enter into a financing agreement, the maximum principal amount17
to be financed, and the maximum annual assessment necessary to repay that amount18
to the holders, as filed in the public record, of any existing mortgages encumbering19
or otherwise secured by the property. A verified copy or other proof of such notice20
shall be provided to the parish governing authority. A provision in any agreement21 HLS 12RS-1156 ORIGINAL
HB NO. 681
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between a mortgagee or other lienholder and a property owner that allows for1
acceleration of payment of the mortgage, note, or lien or other unilateral2
modification solely as a result of entering into a financing agreement as provided for3
in this Section is not enforceable. This Subsection does not limit the authority of the4
holder or loan servicer to increase the required monthly escrow by an amount5
necessary to annually pay the qualifying improvement assessment. the mortgagee,6
its successors or assigns, or mortgage servicer shall be provided prior written notice,7
by certified mail, return receipt requested of the proposed program loan. The8
mortgagee, its successors or assigns, or mortgage servicer shall have thirty days after9
receipt of such notice to approve or deny the proposed program loan. The notice10
shall contain the following information:11
(i) The proposed borrower's name.12
(ii) The description of the property for which the proposed improvements are13
to be made.14
(iii) A description of the improvements to be made.15
(iv) The proposed dollar amount to be loaned.16
(v) The proposed amortization period in which the loan is to be repaid.17
(vi) A statement that the mortgagee, its successors or assigns, has thirty days18
from receipt of the notice to approve or deny the proposed loan.19
(vii) The name and address of the office where to submit a written approval20
or denial of the proposed loan.21
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)]
Leger HB No. 681
Abstract: Provides with respect to financing for projects in sustainable energy financing
districts.
Present law provides that the governing authority of any parish or municipality may create
a special district known as a sustainable energy financing district. Provides that the local
governmental subdivision may incur debt for the purpose of providing to such district
sufficient funds to make the loans provided for in the program. The owner of residential or HLS 12RS-1156 ORIGINAL
HB NO. 681
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commercial immovable property within the district may request financing in the form of a
loan from the district to cover the costs of energy efficiency improvements or renewable
energy improvements that the owner contracts to make to the immovable property. Proposed
law retains present law.
Present law provides that where an energy efficiency or renewable energy improvements
loan in the amount of $100,000 or more is proposed for a commercial property and that
property is encumbered by a mortgage, the mortgagee, its successors, or assigns, or
mortgage servicer shall be provided prior written notice, by certified mail, return receipt
requested of the proposed program loan. The mortgagee, its successors, or assigns, or
mortgage servicer shall have 30 days after receipt of such notice to approve or deny the
proposed program loan. The notice shall contain the following information:
(1)The proposed borrower's name.
(2)The description of the property for which the proposed improvements are to be
made.
(3)A description of the improvements to be made.
(4)The proposed dollar amount to be loaned.
(5)The proposed amortization period in which the loan is to be repaid.
(6) A statement that the mortgagee, its successors, or assigns, has 30 days from receipt
of the notice to approve or deny the proposed loan.
(7)The name and address of the office where to submit a written approval or denial of
the proposed loan.
Proposed law repeals present law.
Proposed law provides that where an energy efficiency or renewable energy improvements
loan of $100,000 or more is proposed for a commercial property and that property is
encumbered by a mortgage, at least 30 days prior to entering into a financing agreement, the
property owner shall provide notice of the owner's intent to enter into a financing agreement,
the maximum principal amount to be financed, and the maximum annual assessment
necessary to repay that amount to the holders, as filed in the public record, of any existing
mortgages encumbering or otherwise secured by the property. A verified copy or other
proof of such notice shall be provided to the parish. A provision in any agreement between
a mortgagee or other lienholder and a property owner which allows for acceleration of
payment of the mortgage, note, or lien or other unilateral modification solely as a result of
entering into a financing agreement is not enforceable. Present law and proposed law do not
limit the authority of the holder or loan servicer to increase the required monthly escrow by
an amount necessary to annually pay the qualifying improvement assessment.
(Amends R.S. 33:130.812(B)(10)(a))