Peacock (SB 89) Act No. 281
Prior law Title XX provided for "Of Pledge."
New law provides for "Security" and provides for "Pledge" in new Title XX-A.
Prior law (C.C. Art. 3133) provided the definition of pledge.
New law provides that an obligor is obligated to fulfill his obligation out of all of his
property, present and future.
Prior law (C.C. Art. 3133.1) provided how pledges relate to Chapter 9 of the Louisiana
Commercial Laws. New law suppresses this provision.
Prior law (C.C. Art. 3134) provided that there are the two kinds of pledge; pawn and
antichresis.
New law provides that in the absence of a preference an obligor's property is available to all
of his creditors and the proceeds of its sale are distributed ratably.
Prior law (C.C. Art. 3135) provided the distinction between pawn and antichresis.
New law provides that a written contract can restrict the obligee's recourse against the obligor
to a particular property or a specified class or kind of property.
Prior law (C.C. Art. 3136) provided that every lawful obligation can be enforceable by
pledge.
New law provides a definition of "security" but it does not change the law.
Prior law (C.C. Art. 3137) provided that if the principal obligation is conditional then the
pledge is confirmed or extinguished with it.
New law clarifies the law by providing that security can be either personal or real and
provides definitions of "personal" and "real" property.
Prior law (C.C. Art. 3138) provided that if the obligation is null then so too is the pledge.
New law provides that suretyship, privilege, mortgage, pledge, and a security interest
established to secure a performance of an obligation are kinds of security.
Prior law (C.C. Art. 3139) provided that a natural obligation can be the basis of a pledge.
New law does not change the law. It provides that the laws of security interest are defined
by the Uniform Commercial Code.
Prior law (C.C. Art. 3140) provided that pledge can be given in money and for any other
object.
New law provides that unless expressly permitted by law, a clause in a contract that provides
in advance that the ownership of a thing given as security will transfer upon default in
performance of the obligation is absolutely null.
New law provides for a new Title XX-A, "Pledge".
Prior law (C.C. Art. 3141) provided that a pledge can be given for another's debt.
New law provides a definition of "pledge".
Prior law (C.C. Art. 3142) provided that a debtor can give in pledge whatever belongs to
him, but cannot confer to a creditor any further right than what he himself has.
New law clarifies the law by providing an exhaustive list of things susceptible of pledge.
Prior law (C.C. Art. 3143) provided that to determine whether a thing given in pledge
belonged to the debtor, reference must be made to the time when the pawn was made. New law clarifies that a contract by which a person purports to pledge a thing that is
susceptible of encumbrance by security interest does not create a pledge under this Title, but
may create a security interest in the thing.
Prior law (C.C. Art. 3144) provided that when the debtor pledges a thing not owned and then
subsequently acquires ownership of thing pledged, his ownership relates back to the time of
the contract and the pledge is good.
New law provides that a pledge is an accessory to the obligation that it secures.
Prior law (C.C. Art. 3145) provided that one may pledge another's property so long as it is
with the express or tacit consent of the owner.
New law provides that a pledge gives the pledgee the right to be satisfied from the thing
pledged and its fruits in preference to unsecured creditors of the pledgor.
Prior law (C.C. Art. 3146) provided that the tacit consent of the owner must be inferred from
circumstances so strong as to leave no doubt of the owner's intention.
New law provides that a pledge may be given to secure the performance of any lawful
obligation.
Prior law (C.C. Art. 3147) provided that as long as the owner of the thing pledged refrains
from claiming it, the debtor cannot seek to have it restored until his debt has been discharged.
New law provides a new rule that is similar to the rule for contracts of mortgage wherein a
pledge that secures an obligation other than the payment of money secures the claim of the
pledgee for the damages he may suffer from the breach of the obligation.
Prior law (C.C. Art. 3148) provided that the pledge of a thing by fiduciaries requires
authorization in the manner prescribed by law.
New law provides that a person may pledge his property to secure an obligation of another
person.
Prior law (C.C. Art. 3149) provided that a mandatary cannot give a thing in pledge unless he
has express power to do so or the principal gives his consent.
New law provides the formal requirements of a contract of pledge.
Prior law (C.C. Art. 3150) provided that pledges by cities or other corporations can only be
given in pledge according to their acts of incorporation.
New law provides a new rule, which is similar to a similar rule for contracts of mortgage,
that a written contract of pledge need not be signed by the pledgee because his acceptance
is presumed.
Prior law (C.C. Art. 3151) was repealed by Acts 1980, No. 150.
New law provides that a contract of pledge may be established only by a person having the
power to alienate the thing pledged.
Prior law (C.C. Art. 3152) provided that it is essential that the creditor be put in possession
of the thing pledged and that he receive actual delivery.
New law provides that a pledge given over a thing that the pledgor does not own is
established when the thing is acquired by the pledgor and the other requirements for the
establishment of the pledge have been satisfied.
Prior law (C.C. Art. 3153) provided that delivery is only necessary for corporeal things
pledged.
New law provides that a pledge is without effect as to third persons unless it has become
effective between the parties and is established by written contract. Prior law (C.C. Art. 3154) provided that every corporeal thing susceptible of alienation can
be pawned, even money.
New law provides for the requirements that must be satisfied for a pledge of the lessor's
rights in the lease of an immovable and its rents to have effect against third persons.
Prior law (C.C. Art. 3155) provided that incorporeal movables, such as credits, can be
pawned.
New law provides that if the thing pledged is another person's obligation not arising under
the lease of an immovable, the pledge is effective against third persons only from the time
that the obligor has actual knowledge of the pledge or has been given notice of it.
Prior law (C.C. Art. 3156) provided that when a debtor wishes to pawn a claim on another
person, he must make a transfer of it in the act of pledge and deliver to the creditor to whom
it is transferred the note or instrument that provides its existence.
New law provides that the pledgee is not obligated to return the pledged thing until all
secured obligations have been extinguished.
Prior law (C.C. Art. 3157) provided that pawn invests the creditor with the right of having
his debt satisfied by privilege in preference to other creditors out of the thing pledged.
New law provides that the contract of pledge is indivisible.
Prior law (C.C. Art. 3158) provided for the formalities and contents of a pledge and the
requirements for pledge of promissory notes and other written obligation to be effective
against third persons.
New law provides a new rule wherein if agreed in a written contract of pledge of a movable
upon failure of performance of the secured obligation, the pledgee may dispose of the thing
pledged.
Prior law (C.C. Art. 3159) provided for the necessary formalities for an act of pledge in favor
of banks to be effective.
New law provides that the pledgee is entitled to receive the fruits of the thing pledged, to
retain it as security, and to apply it to the secured obligation.
Prior law (C.C. Art. 3160) was repealed by Acts 1988, No. 243.
New law provides that the pledgee may apply collections from the third person's obligation
to the secured obligation even if the secured obligation has not yet matured.
Prior law (C.C. Art. 3161) was repealed by Acts 1900, No. 157.
New law provides the notice that is required when performance is to be made by an obligor
of a pledged obligation and what performance of that obligation accomplishes.
Prior law (C.C. Art. 3162) provided that if thing pledged was a corporeal movable or
evidence of a credit or other instrument under private signature the privilege does not subsist
on the pledge unless the thing is actually put and remains in the possession of the creditor or
agreed-upon third person.
New law provides a new rule wherein the obligor may assert against the pledgee any defense
arising out of the transaction that gave rise to the pledged obligation, or assert any other
defense that arises against the pledgor before the obligor has been given written notice of the
pledge.
Prior law (C.C. Art. 3163) provided that when several things have been pawned, the owner
cannot retake one of the things unless the whole debt is satisfied.
New law provides a new rule wherein a clause prohibiting pledge is without effect. Prior law (C.C. Art. 3164) provided that creditors in possession of the pledge enjoy a right
of retention until the whole debt is paid.
New law provides that parties to a contract from which a pledged obligation arises can agree
to modify or terminate the contract or substitute a new contract, and if made in good faith is
effective against the pledgee without his consent.
Prior law (C.C. Art. 3165) provided the rights of a pledgee upon debtor's default and the
procedure to enforce those rights.
New law provides that upon the modification of a contract from which a pledged obligation
arises, the substitution of a new contract encumbers the corresponding rights of the pledgor.
Prior law (C.C. Art. 3166) provided that until the debtor is divested of his property, he
remains the proprietor of the pledge.
New law provides that the pledgor and pledgee may agree that a modification or termination
of the contract from which the pledged obligation of a third person arises or a new contract
is substituted is a default by the pledgor.
Prior law (C.C. Art. 3167) provided that the creditor is responsible for loss or decay of the
pledge that is the result of his fault; the debtor is responsible to the creditor for necessary
expenses incurred for the preservation of the thing pledged.
New law provides that the pledgee is not bound for the pledgor's obligations.
Prior law (C.C. Art. 3168) provided that the fruits of the thing pledged are part of it so they
remain in the hands of the creditor; but the creditor must give an account of them to the
debtor or deduct them from the amount due him.
New law provides the requirements for a contract establishing a pledge of the lessor's rights
in the lease of an immovable and its rents.
Prior law (C.C. Art. 3169) provided for the imputation of interest earned by credit that is
pledged.
New law provides that the pledge of the lessor's rights in the lease of an immovable and its
rents is without effect as to third persons unless the contract establishing the pledge is
recorded in the manner prescribed by law, nevertheless, the pledge is effective against the
lessee from the time that he is given written notice of the pledge.
Prior law (C.C. Art. 3170) provided that the creditor can enforce the pledgee's right to
enforce payment of credit pledged but when received, he must apply it to the payment of the
debt due and any excess given to the pledgor.
New law provides that a pledge of the lessor's rights in the lease of an immovable and its
rents may be established in an act of mortgage of the immovable.
Prior law (C.C. Art. 3171) provided that the pawn cannot be divided between the heirs of the
debtor or creditor.
New law provides that a pledge can be established over all or part of the leases of an
immovable, even those not yet in existence, and that it can be made effective against third
persons.
Prior law (C.C. Art. 3172) provided that if the proceeds of the sale exceed the debt, the
surplus shall be given to the owner; if there is a deficit, the creditor can claim the balance
from the debtor's other property.
New law provides that the owner of land or holder of a mineral servitude can pledge bonuses,
delay rentals, royalties, and shut-in payments by express provision in a contract establishing
a pledge. Prior law (C.C. Art. 3173) provided that debtor taking pledge without the creditor's consent
commits a sort of theft.
New law provides under what circumstances a pledgee shall account to other pledgees for
rent collected.
Prior law (C.C. Art. 3174) provided that a creditor who has been deceived on the substance
or quality of the thing pledged can demand another thing or immediate payment.
New law provides that a pledge of the lessor's rights in the lease of an immovable and its
rents does not entitle the pledgee to cause the rights of the lessor to be sold by judicial
process, any clause to the contrary is absolutely null.
Prior law (C.C. Art. 3175) provided that the creditor cannot acquire the thing through
acquisitive prescription.
New law provides that in all matters not provided for in Chapter 2 of this Title, the pledge
of the lessor's rights in the lease of an immovable and its rents is governed by the provisions
of the first Chapter of this Title.
Prior law (C.C. Art. 3176) provided that the antichresis shall be written; the creditor acquires
the right of reaping the fruits the immovable produces so long as he annually deducts their
proceeds from the interest and then from the principal of the debt. New law repeals this
provision.
Prior law (C.C. Art. 3177) provided that the creditor must pay the taxes, annual charges, and
repairs for the property, unless agreed otherwise. New law repeals this provision.
Prior law (C.C. Art. 3178) provided that before full payment the debtor cannot claim the
enjoyment of the immovable given in pledge; however, the creditor can compel the debtor
to retake the enjoyment of the immovable. New law repeals this provision.
Prior law (C.C. Art. 3179) provided that the creditor does not become owner of the pledged
immovable upon failure of payment at a stated time; any clause to the contrary is null.
New law repeals this provision.
Prior law (C.C. Art. 3180) provided that an agreement that fruits or revenues be compensated
with interest can be performed in any way not prohibited by law. New law repeals this
provision.
Prior law (C.C. Art. 3181) provided that every provision on antichresis cannot prejudice the
rights that a third person may have on the immovable; the creditor in possession of the
immovable cannot have any right of preference to other creditors. New law repeals this
provision.
Prior law (C.C. Art. 3182) relative to privileges, provided that the debtor has general liability.
New law repeals this provision.
Prior law (C.C. Art. 3183) relative to privileges, provided that the property of the debtor is
the common pledge of his creditors and the proceeds of its sale must be distributed among
them ratable unless otherwise there exist some lawful causes of preference. New law repeals
this provision.
Prior law (C.C. Art. 3184) relative to privilege, provided that privilege and mortgages are
lawful causes of preference. New law repeals this provision.
Prior law (C.C. Art. 3346) relative to recordation, provided for the place of recordation and
the duty of the recorder relative to an instrument creating, establishing, or relating to a
mortgage or privilege over an immovable.
New law provides the place where the instrument creating, establishing, or relating to a
mortgage or privilege over an immovable, or the pledge of the lessor's rights in the lease of
an immovable and its rents must be recorded and the duty of the recorder. Prior law (C.C. Art. 3354) relative to recordation, provided the applicability of Chapter 2 of
Title XXII-A of Book III of the Civil Code.
New law provides that the provisions of Chapter 2 of Title XXII-A of Book III of the Civil
Code apply to mortgages and privileges encumbering immovables and to pledges of the
lessor's rights in the lease of an immovable and its rents.
Prior law (C.C. Art. 3355) provided that mortgages or privileges affecting property in several
parishes may be executed in multiple originals for recordation in each of the several parishes;
a certified copy of an instrument that recorded in the records of a parish need only describe
property that is within the parish where it is filed.
New law retains prior law but adds pledges to this provision.
Prior law (C.C. Art. 3356) provided for the transfers, amendments, and releases of an
obligation secured by a mortgage. New law retains prior law but adds pledges to this
provision.
Prior law (C.C. Art. 3357) provided that the effect of recordation of an instrument creating
a mortgage or evidencing a privilege ceases 10 years after the date of the instrument. New
law retains prior law but adds pledges to this provision.
Prior law (C.C. Art. 3358) provided that the duration of recordation of an instrument creating
a mortgage or evidencing a vendor's privilege matures nine years or more after the date of
the instrument, the effect of recordation ceases six years after the latest maturity date
described in the instrument. New law retains prior law but adds pledges to this provision.
Prior law (C.C. Art. 3359) provided that the effect of recordation of a judgment creating a
judicial mortgage ceases 10 years after the date of the judgment. New law retains prior law
but clarifies it with new Comments.
Prior law (C.C. Art. 3360) provided for the duration of recordation of a mortgage given by
a tutor, curator, or succession representative. New law retains prior law.
Prior law (C.C. Art. 3361) provided that if prior to the cessation of the effect of recordation,
an instrument is recorded that amends a recorded mortgage or privilege then the effect of
recordation is determined by reference to the maturity of the obligation last becoming due
as amended. New law retains prior law but adds pledges to this provision.
Prior law (C.C. Art. 3362) provided for the method of reinscribing a recorded instrument that
has created a mortgage or evidenced a vendor's privilege by recording a signed written notice
of reinscription. New law retains prior law but adds pledges to this provision.
Prior law (C.C. Art. 3363) provided that the method of reinscribing provided in the Chapter
is exclusive. New law retains prior law but adds pledges to this provision.
Prior law (C.C. Art. 3364) provided that the effect of a timely recorded notice of reinscription
continues for ten years from the date the notice is recorded. New law retains prior law but
clarifies it with a Comment.
Prior law (C.C. Art. 3365) provided that if the notice of reinscription was recorded after the
effect of recordation has ceased, the effects of recordation continue but only for ten years
from the time the notice of reinscription was recorded.
New law retains prior law with some technical clarification to the text, adds pledges to this
provision, and removes some of the text of the accompanying Comments.
Prior law (C.C. Art. 3366) provided for the form and consent for the cancellation upon
request of a mortgage or privilege by the recorder of mortgages.
New law retains prior law but adds pledges to this provision.
Prior law (C.C. Art. 3367) provided that if the effect of recordation ceases for lack of
reinscription, the recorder upon receipt of a written signed application shall cancel the recordation of the mortgage or privilege. New law retains prior law but adds pledges to this
provision.
Prior law (C.C. Art. 3368) provided for the cancellation of a prescribed judicial mortgage.
New law clarifies the law by providing that both a timely reinscription and a timely suit for
revival are necessary for a judicial mortgage to continue to have effect.
Prior law (R.S. 9:4401) provided for conditional or collateral assignment of leases or rents.
New law provides that any obligation may be secured by a pledge of the rights of a lessor or
sublessor in the lease or sublease of an immovable and its rents.
New law (R.S. 9:4402) provides the right of the pledgee to cash proceeds of rent.
New law (R.S. 9:4403) provides the transitional filing rules for assignments of leases and
rents recorded prior to January 1, 2015.
Prior law (R.S. 9:5386) provided for mortgages including collateral assignments and the
pledge of certain incorporeal rights.
New law clarifies the law by providing that a mortgage of an immovable may contain a
pledge of the mortgagor's rights under policies of insurance covering the immovable and the
procedure detailing how to pledge a mortgagor's right to insurance.
Prior law (R.S. 10:9-102) provides for the definition of "Account" for Chapter 9 of Title 10
of the Louisiana Revised Statutes of 1950.
New law provides a new definition of "Account" for Chapter 9 of Title 10 of the Louisiana
Revised Statutes of 1950.
New law authorizes the La. State Law Institute to add Comments for Civil Code Articles
3359 and 3364.
New law authorizes the La. State Law Institute to amend or to provide headings in the Civil
Code and the Louisiana Revised Statutes of 1950.
Effective January 1, 2015.
(Amends Title XX of Book III of the Civil Code, consisting of Arts. 3133- 3140, Arts. 3346,
3354, 3355, 3356, 3357, 3358, 3361, 3362, 3363, 3365, 3366, 3367, and 3368, R.S. 9:4401
and 5386, and R.S. 10:9-102(a)(2); adds Title XX-A of Book III of the Civil Code (Arts.
3141-3175, R.S. 9:4402 and 4403; repeals C.C. Arts. 3176, 3177, 3178, 3179, 3180, 3181,
3182, 3183, and 3184)