9:4301. [Repealed by Acts 1989 RS, No. 137, Section 19.]

9:4302. [Repealed by Acts 1989 RS, No. 137, Section 19.]

9:4303. [Repealed by Acts 1989 RS, No. 137, Section 19.]

9:4304. [Repealed by Acts 1989 RS, No. 137, Section 19.]

PART II. INCORPOREAL RIGHTS NOT EVIDENCED IN WRITING

9:4321. Pledge of incorporeal rights not evidenced in writing

9:4322. Delivery of rights unnecessary

9:4323. Notice to obligor necessary

9:4323.1. Relation to Chapter 9 of the Louisiana Commercial Laws

PART II-A. DISPOSITION OF PLEDGED INCORPOREAL BY PLEDGOR

9:4324. Pledgor's use or disposition of pledged incorporeal without accounting to pledgee

B. This Section shall not apply to the pledge of instruments negotiable in form.

C. This Section shall apply to pledges and collateral assignments of incorporeal rights that are entered into prior to the time Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.) becomes effective, including without limitation those continuing pledges and collateral assignments that affect rights arising after the effective date and those pledges and collateral assignments that secure future obligations, lines of credit, and other ongoing credit facilities, as well as to pledges and collateral assignments of claims, credits, obligations and incorporeal rights in general not evidenced by written instrument or muniment of title that are exempt or otherwise excluded from coverage under Chapter 9.

PART II-B. SECURITIZED FINANCINGS

9:4330. Securitized financings

9:4331. Pledge of promissory notes without delivery by mortgage companies, finance companies, and other lenders

(1) The pledge shall be made pursuant to a written pledge or security agreement that otherwise complies with the requirements with regard to the contents of written pledge or security agreements. The pledged notes or other evidences of indebtedness need not be specifically described in detail. A reasonable description of the pledged notes or instruments shall be sufficient. When the pledge is made pursuant to a continuing financing arrangement between the parties, the pledge agreement may provide for the future pledge of similar notes or instruments without further description.

(2) The pledgor writes, affixes, or otherwise stamps a notice on the face or reverse side of such pledged notes or other written evidences of indebtedness to the effect that such instruments are being pledged to the pledgee.

(3) The pledge is bona fide and not intended to defraud the rights of legitimate third party creditors of the pledgor.

(4) The pledgor is a bank, savings and loan association, credit union, or corporation, partnership, trust, or association that is regularly engaged in the business of making or purchasing loans and notes, whether made on a secured or unsecured basis, as a mortgage company, consumer or commercial finance company, or other type of lender.

B. The attachment, affixation, or inclusion of the notice provided in Paragraph A(2) on the face or reverse side of the pledged note or other written evidence of indebtedness shall serve as notice to all third parties that the instrument has been pledged to the pledgee. The debtor or debtors under such a pledged instrument may continue to make payments under such instrument to the pledgor/payee until such time as the debtor is notified to make future payments to the pledgee or its agent.

C. The pledgor and pledgee may agree in writing as to procedures to be followed regarding the periodic release of promissory notes and other written evidences of indebtedness from pledge. Upon compliance with the agreed procedures, the pledgor may remove, delete, or cross out the notice provided in Paragraph A(2).

D. The provisions of this Section shall apply solely to the pledge of promissory notes or other written evidences of indebtedness. They shall not apply to pledges of collateral mortgage notes and collateral chattel mortgage notes by the mortgagor/maker.

E. This Section is intended to provide an additional method of pledging promissory notes and other written evidences of indebtedness by banks, savings and loan associations, credit unions, mortgage companies, finance companies, and other lenders. Creditors at their sole option may continue to accept pledges of promissory notes and other written evidences of indebtedness as provided by law, including without limitation, physical delivery of the pledged instruments.

F. This Section shall apply to pledges of promissory notes by mortgage companies, finance companies, and other lenders that are entered into prior to the effective date of Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101 et seq.), including without limitation those continuing pledges that affect promissory notes executed or pledged after the effective date and those pledges that secure future obligations, lines of credit, and other ongoing credit facilities and shall also apply to transactions that are subject to Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101 et seq.).

9:4331.1. Sale of promissory notes, other evidence of indebtedness or other obligations without delivery by mortgage companies, finance companies, and other lenders

(1) The sale shall be made pursuant to a written sales agreement signed by the parties. The promissory notes or other evidences of indebtedness or other obligations subject to sale need not be specifically described in detail. A reasonable description of the notes, other written evidences of indebtedness, or other obligations shall be sufficient. When the sale is made pursuant to a continuing arrangement between the parties, the sales agreement may provide for future sales of similar notes or instruments without further description.

(2) The seller writes, affixes, or otherwise stamps a notice on the face or reverse side of such notes or other written evidences of indebtedness or other obligations, or notes in its computer files or records, that such notes, other written evidences of indebtedness or other obligations are being sold to the transferee.

(3) The sale is bona fide and not intended to defraud the rights of legitimate third party creditors of the seller.

(4) The seller is a bank, savings bank, savings and loan association, credit union, or corporation, partnership, trust, or association that is regularly engaged in the business of making or purchasing loans and notes, whether made on a secured or unsecured basis, as a mortgage company, consumer or commercial finance company, or other type of lender.

B. The attachment, affixation, or inclusion of the notice provided in Paragraph A(2) on the face or reverse side of the sold notes or other written evidence of indebtedness or other obligations, or in the originating creditor's computer files or records, shall serve as notice to all third parties that the note, other evidence of indebtedness or other obligation has been sold to the transferee. The debtor or debtors under such note, other evidence of indebtedness or other obligation may continue to make payments to the seller/payee until such time as the debtor is notified to make future payments to the transferee or its agent.

C. The provisions of this Section shall apply solely to sales of promissory notes or other written evidences of indebtedness or other obligations, including without limitation credit card, revolving loan, and revolving charge account receivables.

D. This Section is intended to provide an additional method of selling or transferring promissory notes or other written evidences of indebtedness or other obligations, including credit card, revolving loan, and revolving charge account receivables, by banks, savings and loan associations, credit unions, mortgage companies, finance companies, and other lenders.

9:4332. Sale, assignment, and pledge of nonnegotiable notes; notice to the debtor

B. This Section shall also apply to transactions secured by pledges of nonnegotiable promissory notes that are subject to Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101 et seq.).

9:4333. Endorsement of pledged notes

B. This Section shall also apply to transactions secured by promissory notes and other written evidences of indebtedness that are subject to Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.).

9:4334. Fraud in connection with sales or pledges of promissory notes and accounts receivable; penalties

(1) Who with intent to defraud offers to sell or pledge or collaterally assign or grant a security interest under Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101 et seq.) on a promissory note, accounts receivable as defined under R.S. 9:3101 (1), or on instruments, accounts, chattel paper, or general intangibles subject to Chapter 9 of the Louisiana Commercial Laws, or any other written evidence of indebtedness that either does not exist or that itself is fraudulent,

(2) Who agrees to write, affix, or stamp the notice required under R.S. 9:4331 (A)(2) or R.S. 9:4331.1 (A)(2) on a sold or pledged promissory note or other written evidences of indebtedness, but fails to do so with intent to defraud,

(3) Who with intent to defraud attempts to sell or pledge or collaterally assign or grant a security interest under Chapter 9 of the Louisiana Commercial Laws on promissory notes, accounts receivable, instruments, accounts, chattel paper, general intangibles, or any other evidences of indebtedness to more than one transferee or creditor, or

(4) Who wrongfully and with intent to defraud removes the notice required under R.S. 9:4331 (A)(2) or R.S. 9:4331.1 (A)(2) from a sold or pledged promissory note, shall be fined not more than five thousand dollars or imprisoned for not more than two years, or both.

B. Any such person shall further be civilly liable to third parties suffering damages caused by such fraud for the amount of actual damages sustained, plus reasonable attorney fees.

PART III. CROP PLEDGES

SUBPART A. IN GENERAL

9:4341. Pledge of crops; recording; rank

9:4342. Pledge to consignee of crops

9:4343. Pledge on consigned property for money due by consignor

SUBPART B. RECORDATION

9:4361. Manner of recording

B. (1) The recorders of mortgages for all parishes may record, in the book provided for the recordation of privileges and pledges on crops, only an abstract of the crop pledge filed for record, which abstract shall contain the time of filing for recordation, the name of the pledgor, the name of the pledgee, the date of the pledge, the amount secured, the date when due, the crops pledged, a description of the property on which the crops are to be grown, and a reference to the instrument evidencing the pledge, which instrument may also be filed in the office of the recorder of mortgages in such manner that it may be readily located by the reference.

(2) The pages of the crop pledge book shall be ruled into columns, with headings as follows: "Time of Filing for Recordation"; "Name of Pledgor"; "Name of Pledgee"; "Date of Pledge"; "Amount Secured"; "When Due"; "Crops Pledged"; "Identification of Pledged Instrument".

(3) Under the heading of "Crops Pledged" it shall be sufficient to enter the crops pledged and a general description of the property on which they are to be grown.

(4) Recorders of mortgages may destroy the crop pledge records in their respective offices ten years after the date of their recordation.

9:4362. [Repealed by Acts 1988 RS, No. 370, Section 2.]

9:4363. Charge for recording

SUBPART C. LIABILITY FOR VIOLATIONS

9:4381. Sale of secured crops; penalty

B. No person shall, as payee or as agent of a payee, sign or endorse any check, draft, or other negotiable instrument with the intent to aid or contribute to the deprivation of a secured party of his rights or of the proceeds of a crop affected by such security interest, or to cause loss or liability to a broker or purchaser of any such crop or portion thereof.

C. Any person who violates this Section shall be fined not more than one thousand dollars, or imprisoned for not more than six months, or both.

9:4382. Purchase of secured crops; penalty

B. Any person who violates this Section shall be fined not more than one thousand dollars, or imprisoned for not more than six months, or both.

PART IV. PLEDGE OR ASSIGNMENT OF LEASES AND RENTS

SUBPART D. RELATION TO CHAPTER 9 OF THE LOUISIANA COMMERCIAL LAWS

9:4391. Relation to Chapter 9 of the Louisiana Commercial Laws

B. Subpart C of this Part shall apply to outstanding crop pledges previously granted under R.S. 9:4341, as well as to crops that are secured by perfected security interests under and subject to Chapter 9 of the Louisiana Commercial Laws.

C. Crops, whether harvested or unharvested, growing or to be grown, may be the subject of a security interest under Chapter 9 of the Louisiana Commercial Laws.

PART IV. PLEDGE OR ASSIGNMENT OF LEASES AND RENTS

9:4401. Conditional or collateral assignment of leases or rents

(1) An assignment relating to a lease or rent of an immovable is given the effect of recordation when an original or a certified copy of the instrument creating the assignment is filed in the conveyance records of the parish in which the immovable is situated; however, an assignment contained in an act of mortgage filed in the mortgage records of such parish on or after September 1, 1995, shall be given the effect of recordation when, to the extent, and for so long as the act of mortgage is given such effect, without the need for separate recordation in the conveyance records. An assignment given the effect of recordation has such effect with regard to all obligations, present and future, secured thereby notwithstanding the date of the incurrence of such obligations or the nature of such obligations.

(2) Such assignment may include all or any portion of the assignor's presently existing and anticipated future leases and rents pertaining to the described immovable property. As future leases or rents of an immovable come into existence the assignee's rights as to such leases and rents shall have effect as to third persons from the date of the filing of the instrument. It shall not be necessary to specifically describe the presently existing or future arising leases or rents; to affect the assignor, the assignee, the debtor, or other third parties the instrument shall suffice if it contains a general description of the leases and rents together with a description of the immovable affected by the lease. The immovable property description shall be the kind of description which, if contained in a mortgage of the immovable, would cause such mortgage to be effective as to third persons if the mortgage were properly filed for record under the laws of this state.

(3) Once an assignment relating to leases or rents of an immovable is so filed, the assignee shall have a superior claim to the leases and rents assigned and their proceeds as against all other creditors whose claims or security interests arise or are perfected after the filing of the assignment, notwithstanding the fact that the debtor is not notified of or does not consent to the assignment or that the assignee is not in possession of the immovable property.

(4) Except for purposes of Subsection G, the term "lease" as used in this Section includes a sublease.

B. This Section is intended to recognize one method of securing obligations, and shall not have the effect of repealing any other provision of law in respect to pledge, pawn, and assignment of incorporeal rights.

C. This Section is remedial and shall be retroactive. All assignments of leases or rents heretofore made in compliance with the provisions of this Section are hereby validated.

D. A landowner or mineral servitude owner may make a conditional or collateral assignment pursuant to this Section of rents, royalties, delay rentals, shut-in payments, and other payments which are rent or rentals under Title 31 of the Louisiana Revised Statutes attributable to the landowner's sale, lease, or other disposition of his right to explore and develop his land for production of minerals or to the mineral servitude owner's sale, lease, or other disposition of his mineral right. This Section shall not otherwise apply to rents, royalties, overriding royalties, bonuses, and other payments and other rights under mineral leases and other contracts relating to minerals.

E. This Section shall apply to leases of movable property subject to the Louisiana Lease of Movables Act entered into prior to the time Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.) becomes effective, including without limitation those assignments of leases that affect rights arising after the effective date of Chapter 9 and those continuing assignments that may secure future obligations, lines of credit, and other ongoing credit facilities. This Section shall further apply to assignments of leases of immovable property located in this state without regard to the time Chapter 9 becomes effective.

F. (1) Except as otherwise agreed to by the parties, the assignee's interest in the leases or rents assigned continues in any identifiable proceeds including collections received by the assignor.

(2) In the event of insolvency proceedings instituted by or against an assignor, the assignee has a perfected security interest in proceeds of the leases or rents or both leases and rents assigned, as follows:

(a) In indentifiable noncash proceeds and in separate deposit accounts containing only proceeds.

(b) In identifiable cash proceeds in the form of money which is neither commingled with other money nor deposited in a deposit account prior to the insolvency proceedings.

(c) In identifiable cash proceeds in the form of checks and the like which are not deposited in a deposit account prior to the insolvency proceedings.

(d) In all cash and deposit accounts of the assignor in which proceeds have been commingled with other funds, but the perfected security interest under this Section is subject to any right of set-off. It is further limited to an amount not greater than the amount of any cash proceeds received by the assignor within ten days before the institution of the insolvency proceedings, less the sum of:

(i) the payments to the assignee on account of cash proceeds received by the assignor during such period; and

(ii) the cash proceeds received by the assignor during such period to which the assignee is entitled under Paragraphs (a) through (c) of Subsection F(2).

G. (1) The rights of an assignee against the debtor shall be subject to any dealing by the debtor with the assignor, any other assignee, or other successor in interest of the assignor until the debtor receives written notice from or on behalf of the assignee or the assignor that the assignment of the particular lease or rent of which he is debtor has become absolute. A notification which does not reasonably identify the rights assigned is ineffective. If requested by the debtor, the assignee must seasonably furnish reasonable proof that the assignment has been made and unless he does so the debtor may pay the assignor.

(2) Except as provided in this Subsection (G), a debtor who has received written notice that the assignment has become absolute will not be discharged from his debt if he pays anyone other than the assignee. In any case in which a debtor is not notified of the assignment made in compliance with the provisions of this Section and, in good faith, makes payment of rent in whole or in part to the assignor or the assignor's successor, or to a subsequent assignee of the rent who shall have notified the debtor of that assignment, then to the extent of payment, the debtor shall be exonerated of liability to make payment to the first assignee; however, the person to whom payment was made shall be accountable and liable to the assignee for the sums received. The debtor may, at its option, commence concursus proceedings instead of making payment to the assignor or the assignee.

(3) Notwithstanding the debtor's receipt of written notice of the assignment, a modification of or substitution for the lease made in good faith and in accordance with reasonable commercial standards is effective against an assignee, unless the debtor has otherwise agreed with the assignee. In either event the assignee acquires rights under the modified or substituted lease corresponding to the assignee's rights under the original lease. No termination or modification of or substitution for a lease shall be effective against an assignee as to the right to the payment of rent or a part thereof under an assigned lease which has been fully earned by performance. The assignment may provide that modification of or substitution for the lease is a default by the assignor.

(4) A term in any lease between a debtor and an assignor is ineffective if it prohibits assignment of rent or prohibits creation of a security right in rent due or to become due or requires the debtor's consent to such assignment of rent or security interest in rent.

(5) The mere existence of a conditional or collateral assignment does not impose contract or tort liability upon the assignee for the assignor's acts or omissions relating to such leases.

H. (1) The effect of recordation of all assignments recorded on or after September 1, 1990, ceases ten years after the date of the instrument creating the assignment, except, that if an instrument creating an assignment describes the maturity of an obligation secured thereby and if any part of the described obligation matures nine years or more after the date of the instrument, the effect of recordation ceases six years after the described maturity date. A recorded instrument creating an assignment may be reinscribed by filing a signed, written notice of reinscription. The notice shall state the name of the assignor as it appears in the recorded instrument and recordation number or other appropriate recordation information of the instrument or of a prior notice of reinscription and shall declare that the instrument is reinscribed. A notice of reinscription that is filed before the effect of recordation ceases continues that effect for ten years from the date the notice is filed. A notice of reinscription that is filed after the effect of recordation ceases produces the effects of recordation, but only from the date the notice is filed. The method of reinscription provided in this Section is exclusive, and neither an amendment of an instrument creating an assignment nor an acknowledgment of the existence of an assignment by the assignor constitutes a reinscription of the instrument. Notwithstanding the foregoing, the effect of recordation of an assignment contained in an act of mortgage filed on or after September 1, 1995, continues for so long as the act of mortgage is given the effect of recordation. In such cases, reinscription of the act of mortgage constitutes reinscription of the assignment contained therein.

(2) Notwithstanding the foregoing provisions, the effect of registry of all assignments recorded on or before August 31, 1990, shall be determined by the other laws of registry applicable thereto.

(3) The recordation of an assignment may be cancelled by the consent of the assignee evidenced by any written release, under private signature or otherwise. Cancellation or erasure of an act of mortgage containing an assignment constitutes cancellation of the assignment contained therein, whether the act of mortgage was recorded in the mortgage records or conveyance records, or both.

I. The provisions of R.S. 9:4401(A), as amended and reenacted, and the provisions of R.S. 9:4401(G) and (H) as enacted by Acts of the 1990 Regular Session are remedial and shall, wherever possible, be given retroactive effect. All assignments of present and future leases or rents heretofore made in compliance herewith are hereby validated.

PART V. PLEDGE OR ASSIGNMENT OF SECURED INSTRUMENTS

9:4421. Pledge, assignment, or collateral assignment of secured instruments

B. A pledge of a secured instrument shall be effective against third persons upon compliance with the provisions of Civil Code Article 3158, or upon compliance with R.S. 9:4321, 4322, and 4323, if applicable.

C. An assignment of a secured instrument shall be effective against third persons upon compliance with the provisions of Civil Code Articles 2642 through 2646.

D. A collateral assignment of a secured instrument shall be effective against third persons upon compliance with the provisions of Civil Code Article 3158, or upon compliance with R.S. 9:4321, 4322, and 4323, if applicable.

E. If the mortgage, mortgage and vendor's lien or vendor's privilege, or vendor's lien or privilege has been filed for recordation in the proper mortgage records, the pledge, assignment, or collateral assignment of the secured instrument shall create a security interest in favor of the pledgee or assignee effective against third persons from the date of physical delivery of the secured instrument to the pledgee or assignee or to a third person agreed on by the parties. If the act evidencing the ancillary obligation securing the written instrument pledged, assigned, or collaterally assigned has not been filed for recordation in the proper mortgage records, the pledgee's or assignee's security interest shall be effective against third persons from the earliest concurrence of physical delivery of the written instrument to the pledgee, assignee, or to a third person, and filing of the mortgage in the proper mortgage records. Once the mortgage instrument has been properly filed for recordation, no refiling or rerecordation is necessary upon any further pledge, repledge, assignment, or collateral assignment of the secured instrument.

F. In the case of the obligor's default on the obligation secured by the pledge, assignment, or collateral assignment, the pledgee or assignee may enforce the secured instrument according to its terms.

G. For the purpose of this Section:

(1) The term "pledge" shall have the same meaning as in Title XX of Book III of the Civil Code.

(2) The term "assignment" shall have the meaning set forth in Civil Code Articles 2642 through 2646.

(3) The term "collateral assignment" shall mean an assignment given as security for an obligation and shall be treated as a pledge.

H. This Section shall apply to a pledge, assignment, or collateral assignment of items referred to above that are effective as to third persons at the time Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.) becomes effective, and which would constitute a security interest under Chapter 9 if such pledge, assignment, or collateral assignment were perfected after the time Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.) becomes effective. This includes, without limitation, any pledge, assignment, or collateral assignment that may secure future obligations and lines of credit.

9:4422. Obligations secured by mortgages or privileges; signatures and writings deemed authentic for purposes of foreclosure

(1) All signatures of the following persons or entities are presumed to be genuine and no further evidence is required of those signatures for the purposes of executory process: endorsers, guarantors, and other persons whose signatures appear on or are affixed to such instrument secured by the mortgage or privilege.

(2) The assignment, pledge, negotiation, or other transfer of any obligation secured by a mortgage or privilege may be proven by any form of private writing, and such writing shall be deemed authentic for the purposes of executory process.

(3) The holder of any negotiable instrument or instrument that would be negotiable but for a limitation of personal liability to the maker or any comaker under this Section may enforce the mortgage or privilege securing such instrument without authentic evidence of the signatures, assignment, pledge, negotiation, or transfer thereof.

9:4423 to 9:4450. [Blank]

9:4451. [Blank]

9:4452 to 9:4500. [Reserved]