HLS 18RS-664 ORIGINAL 2018 Regular Session HOUSE BILL NO. 172 BY REPRESENTATIVE GAROFALO MORTGAGES: Provides relative to the cancellation of inferior liens and mortgages 1 AN ACT 2To amend and reenact Code of Civil Procedure Article 2376, relative to the cancellation of 3 liens and mortgages; to provide for the cancellation of inferior mortgages and liens 4 on property sold at sheriff's sale; and to provide for related matters. 5Be it enacted by the Legislature of Louisiana: 6 Section 1. Code of Civil Procedure Article 2376 is hereby amended and reenacted 7to read as follows: 8 Art. 2376. Release of inferior mortgages 9 A. The sheriff shall give the purchaser a release from the security interest, 10 mortgage, lien, or privilege of the seizing creditor, and from all inferior security 11 interests, mortgages, liens, and privileges, and he shall direct the recorder of 12 mortgages or proper filing officer clerk of court to cancel their inscriptions in so far 13 as they affect the property sold. 14 B. If the inscription of an inferior mortgage, lien, or privilege encumbering 15 the property sold is not included on a mortgage certificate ordered by the sheriff in 16 connection with a judicial sale, the clerk of court shall cancel it insofar as it affects 17 the property sold by the sheriff, upon receipt of an affidavit requesting cancellation 18 from the seizing creditor or any person subsequently acquiring an interest in the 19 immovable. The affidavit shall contain a statement that the affiant shall indemnify Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-664 ORIGINAL HB NO. 172 1 the clerk of court and sheriff for any losses they may sustain because of incorrect or 2 false statements contained in the affidavit. 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 172 Original 2018 Regular Session Garofalo Abstract: Provides for the cancellation of inferior inscriptions on property sold at sheriff's sale regardless of whether the inscriptions appeared on the mortgage certificate in the foreclosure proceeding. Present law provides that the property sold at a sheriff’s sale shall be sold with a release of the mortgage of the seizing creditor and inferior mortgages and liens, and the sheriff shall direct the recorder of mortgages to cancel those inscriptions in so far as they affect the property sold. Proposed law provides for the cancellation of inferior inscriptions regardless of whether they appeared on the mortgage certificate in the foreclosure proceeding. (Amends C.C.P. Art. 2376) Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions.