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)]
HB 496 Original 2015 Regular Session Willmott
Abstract: Changes the 41-year period for reinscription of mortgages in favor of savings and loans
to a 10-year period as provided by the Civil Code general provisions on registry.
Present law provides provisions for security for loans on movable and immovable property granted
by savings and loan associations.
Present law provides that mortgages recorded in favor of savings and loan associations remain in full
force and effect without the necessity of being reinscribed in the mortgage records for a period of
41 years from the date of inscription for immovable property and for 31 years for home appliances
and equipment.
Proposed law deletes present law and applies the general rules of registry of Civil Code Articles
3357 and 3358 which provide the effect of recordation ceases 10 years after the date of the
instrument, and that if the instrument specifies a maturity date nine years or more after the date of
the instrument, the effect of recordation ceases six years after the latest described maturity date.
Proposed law provides for retroactive application of the prescriptive period to existing mortgages
that have not yet prescribed, so that the mortgages shall prescribe upon the earlier of the application
of proposed law or the law applicable when the mortgages were recorded.
Proposed law provides that the recordation of the authentic act evidencing a mortgage on home
appliances and equipment shall be binding on third persons and need not be reinscribed for five years
from the date of inscription, but if a mortgage on home appliances and equipment matures more than
five years from the date of the instrument, the effect of recordation ceases five years after the latest
maturity date described in the instrument.
Proposed law deletes present law which provides that the vendor's privilege and mortgages of equal
rank to the vendor's privilege shall remain in force for a period of 41 years from the date of
inscription.
Provides that present law shall be liberally construed in favor of notes secured by a vendor's privilege
and mortgage in favor of an association.
Proposed law repeals present law.
(Amends R.S. 6:830(F), (G)(4), and (H)(2); Repeals R.S. 6:830(G)(5))