The Practicing Notary, Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public Baton Rouge Notary Public

CODE TITLE VII SALE

CHAPTER 1. SALES IN GENERAL

PART I. RESEARCH CERTIFICATES

SUBPART A. TAX CERTIFICATES; NEW ORLEANS EXCEPTED

9:2901. Payment of taxes prior to transfer of real property

Any party to an act conveying real property located in this state outside the limits of any municipal corporation having a population of over three hundred thousand inhabitants may obtain a certificate showing whether the state, parish, municipal, and levee district taxes due thereon, except those for the year in which the conveyance takes place, have been paid.

9:2902. Receipt or certificate of collector

Payment shall be shown by the receipt or the certificate of the officer having charge of the collection of the taxes or by the certificate of the state auditor, city controller, or other officer having charge of the accounts.

9:2903. Certificate annexed to act; evidence of payment; officer exonerated for nonpayment

The certificates so annexed to the act shall be conclusive evidence of the payment of all taxes therein certified to have been paid.

9:2904. [Repealed by Acts 1978, No. 651, Section 3]

SUBPART B. TAX, LOCAL IMPROVEMENT ASSESSMENT, AND NONALIENATION CERTIFICATES; NEW ORLEANS

9:2921. Payment of taxes and past due charges for local improvement assessments prior to transfer of real property

No public officer shall execute, pass, or acknowledge any act conveying real property located within the limits of any municipal corporation in this state having a population of over three hundred thousand inhabitants unless the state, parish, municipal, and levee district taxes due thereon and the past due charges for local improvement assessments due thereon are paid.

9:2922. Receipt or certificate of collector

Payment shall be shown by the receipt or the certificate of the officer having charge of the collection of the taxes or charges or by the certificate of the state auditor, state tax collector, city controller, or other officer having charge of the accounts.

9:2923. Content of certificate

When preparing a certificate as provided in R.S. 9:2922, the certifying officer shall examine and report the condition of the tax rolls for thirty years prior to January first of the year in which the certificate is applied for and in the case of local improvement assessments, for ten years prior to January first of the year and for future years during which installments for such charges may become due, reserving to the municipal corporation recourse against its collectors and deputy collectors and their bondsmen for any losses it may sustain by reason of any errors made in the certificate.

The tax certificates shall indicate whether or not the current taxes have been paid, and shall indicate for each separate year the method by which the taxes have been paid or considered paid, whether by the tax debtor, by tax sale, or by any other manner.

The municipal corporation shall fix by ordinance the price to be charged for research certificate.

9:2924. Certificate annexed to act; evidence of payment; officer exonerated for nonpayment

The certificates shall be annexed to the act, shall be conclusive evidence of the payment of all taxes or past due charges therein certified to have been paid, and shall exonerate the public officer from liability for nonpayment thereof.

9:2925. Assumption by transferee of taxes for current year

The taxes for the year in which the transfer takes place may be assumed by the transferee if they cannot be paid on the date the act is executed because the collecting officer is not prepared to receive them and to issue an official receipt therefor.

9:2926. Assumption by transferee of local improvement assessment charges maturing in future

Nothing contained in R.S. 9:2921 pertaining to the local improvement assessments shall prevent the execution, passing, or acknowledgment of any act conveying real property if the act contains a specific assumption of the installment charges which are to mature in the future.

9:2927. Penalty for violation; act prima facie proof

Any public officer who violates R.S. 9:2921 shall be fined not less than one hundred dollars nor more than two hundred dollars. The act offered in evidence shall be prima facie proof of the violation.

9:2928. Nonalienation certificate; penalty for violation

No notary or sheriff of the Parish of Orleans shall pass any act conveying real property located in the Parish of Orleans without first obtaining from the register of conveyances a certificate showing that the vendor has not alienated the property. The certificate shall contain a description of the property and shall be annexed to the act.

Any notary or sheriff of the Parish of Orleans who violates this Section shall be fined not less than two hundred and fifty dollars nor more than five hundred dollars.

CHAPTER 2. CONVENTIONAL SALES

PART I. BOND FOR DEED CONTRACTS

9:2941. "Bond for deed" defined

A bond for deed is a contract to sell real property, in which the purchase price is to be paid by the buyer to the seller in installments and in which the seller after payment of a stipulated sum agrees to deliver title to the buyer.

9:2942. Unlawful to sell encumbered real property by bond for deed without guarantee to release on payment

It shall be unlawful to sell by bond for deed contract, any real property which is encumbered by mortgage or privilege without first obtaining a written guarantee from the mortgage and privilege holders to release the property upon payment by the buyer of a stipulated mortgage release price, with which agreement the secured notes shall be identified. The agreement shall be recorded in the mortgage records of the parish where the property is situated before any part of the property is offered for sale under bond for deed contracts. The provisions of this Part likewise shall apply to any property offered for sale by bond for deed contract which may be subsequently mortgaged or encumbered by a privilege.

9:2943. Method of payment

All payments by the buyers under bond for deed contracts of property then or thereafter burdened with a mortgage or privilege, shall be made to some bank authorized to do business in this state, which shall have been designated as the escrow agent for all parties interested in the contract. The payments shall be distributed by the escrow agent between the seller and the holder of the mortgage or privilege, in such proportion as the secured obligation shall bear to the purchase price in order to insure the buyer an unencumbered title when all payments have been made as provided in the bond for deed contract.

9:2944. Timely payment of installments precludes foreclosure; change of description upon foreclosure

The payment as they fall due of all installments by buyers under bond for deed contracts, shall preclude the holder of any secured notes from foreclosure, but the failure of the buyers to make payments as they fall due, shall secure to the holder of the notes the right to foreclose when the notes become due and are unpaid. In the event of a foreclosure under such circumstances, the description as contained in the act of mortgage may be changed so as to leave unaffected those lots or tracts of land on which payments have been kept up and so as to affect and adjudicate under the foreclosure only such lots as may be in default of payments and other lots not sold under bond for deed contracts.

9:2945. Cancellation of bond for deed upon default

If the buyer under a bond for deed contract shall fail to make the payments in accordance with its terms and conditions, the seller, at his option, may have the bond for deed cancelled by proper registry in the conveyance records, provided he has first caused the escrow agent to serve notice upon the buyer, by registered mail at his last known address, that unless payment is made as provided in the bond for deed, within forty-five days from the mailing date of the notice, the bond for deed shall be cancelled. Where there is no mortgage or privilege existing upon the property, and the buyer shall be in default, the seller shall exercise the right of cancellation in the same manner. The fee of the clerk of court for the registry of the cancellation shall not exceed the legal rate per hundred words fixed for conveyance registries.

9:2946. Unlawful to require mortgage notes when property encumbered; act of sale

It shall be unlawful for any seller in a bond for deed contract to require promissory notes to represent the purchase price or any portion thereof, if the property should be encumbered with a mortgage or privilege. Upon the payment to the escrow agent of the sum necessary to release the property, the seller shall execute a deed to the buyer and may then exact one or more mortgage notes to represent any portion of the unpaid purchase price. Should the property not be encumbered with a mortgage or privilege, and a note has been executed to represent all or a part of the price under the bond for deed contract, when the buyer shall become entitled to demand a deed, the seller shall execute an authentic sale and the notary passing it shall require the production of the note or notes and shall cancel them at the time of passing the sale.

9:2947. Penalty for violations

Any person who sells by bond for deed contract any real property encumbered by mortgage or privilege without first obtaining and recording the guarantee required by R.S. 9:2942, shall be fined not more than one thousand dollars, or imprisoned for not more than six months, or both.

Any seller in a bond for deed contract of property encumbered with a mortgage or privilege, who requires promissory notes to represent the purchase price or any portion thereof, shall be fined not more than one thousand dollars, or imprisoned for not more than six months, or both.

9:2948. Bond for deed buyer deemed owner for purposes of homestead exemption

Notwithstanding any other provisions of law to the contrary, the buyer under a bond for deed contract shall be deemed, for purposes of the homestead exemption only, to own any immovable property he has purchased and is occupying under bond for deed, and may be eligible for the homestead exemption provided in Article VII, Section 20(A) of the Constitution of Louisiana if otherwise qualified. The buyer under a bond for deed contract shall apply for the homestead exemption each year.

9:2949. Homestead exemption

A buyer and occupant of a residence under a bond for deed contract is the owner of the thing for purposes of the homestead exemption granted to other property owners pursuant to Article VII, Section 20(A) of the Constitution of Louisiana. The buyer under a bond for deed contract shall apply for the homestead exemption each year.

PART II. SALES OF MOTOR VEHICLE DEALERSHIPS

9:2961. Limited availability of revocatory action

A. A revocatory action may not be brought in connection with the sale of a motor vehicle dealership if the requirements of this Part are met.

B. The transferor and the transferee shall, at least ten days before the completion of any such transfer or the payment of any consideration therefor, make a full and detailed inventory showing the quantity and, so far as possible with the exercise of reasonable diligence, the cost price to the transferor of each article to be included in the sale.

C. The transferee shall demand of and receive from the transferor, or if the transferor be a corporation, then from the president, vice president, secretary, or managing agent thereof, a written statement, sworn to substantially as hereinafter provided, of the names and addresses of all of the creditors of the transferor to whom the transferor may be indebted, together with the amount of indebtedness due and owing, and to become due and owing by the transferor to each of the creditors. The transferor shall furnish to the transferee such statement, which shall be verified by an oath to the following effect:

State of Louisiana

Parish of

Before me _____ personally appeared _____ (transferor or agent) who, being by me first duly sworn upon his oath, deposed and said that the foregoing statement contains the names of all the creditors of _____ (name of transferor), together with their addresses, and that the amount set opposite each of their respective names is the amount now due and owing and which shall become due and owing by _____ (transferor) to such creditors, and that there are not creditors holding claims due or which shall become due for or on account of goods, wares, merchandise, or fixtures, or equipment used or to be used in the display, manufacture, care, or delivery of any goods, wares, or merchandise, including movable store and office fixtures, vehicles, or other goods and chattels of the transferor's business purchased upon credit or on account of money borrowed to carry on the business of which the property is a part other than as set forth in said statement, and that the facts set out in this affidavit are within the personal knowledge of the affiant.

__________________________

Sworn and subscribed to before me this ____ day of _____, 19__.

____________________________ Title of officer taking oath

D. The transferee shall, at least ten days before the completion of the transfer or the payment of any consideration therefor, notify personally, by registered mail, or by certified mail, every creditor listed or of whom he has knowledge or can, with reasonable diligence, acquire knowledge, of the time set for the transfer of the property and a copy of the statement of creditors. The transferee shall at least seven days before the completion of the transfer advertise in the official journal of the parish where the motor vehicle dealership is located giving the date, place, and time of the sale. Any creditor whose name has been omitted from the statement may give written notice of his claim to the transferee and shall thereafter be entitled to share equally with the other creditors entitled to the benefits of this Part as to the proceeds of such sale or transfer as are then held by the transferee.

E. No provision of this Part shall be construed as in any way compromising the rights of secured creditors, validly acquired, and their respective rankings as opposed to unsecured creditors, as it relates to their claims against the proceeds of a sale or transfer conducted in conformity with the Part.

F. A buyer of an automobile dealership who complies with the requirements of this Part shall be deemed to have acquired clear title to all of the assets of the acquired dealership, once the proceeds of the sale have been distributed in conformity with the requirement and provisions of this Part.

9:2962 to 9:2968. Repealed by Acts 1991, No. 377, � 8, eff. Jan. 1, 1992

PART III. TRANSFER OF LANDS FRONTING WATERWAYS, HIGHWAYS, ETC.

9:2971. Presumption of grant of all interest; exceptions

It shall be conclusively presumed that any transfer, conveyance, surface lease, mineral lease, mortgage or any other contract or grant affecting land described as fronting on or bounded by a waterway, canal, highway, road, street, alley, railroad or other right of way, shall be held, deemed and construed to include all of grantor's interest in and under such waterway, canal, highway, road, street, alley, railroad, or other right of way, whatever that interest may be, in the absence of any express provision therein particularly excluding the same therefrom; provided, that where the grantor at the time of the transfer or other grant holds as owner the title to the fee of the land situated on both sides thereof and makes a transfer or other grant affecting the land situated on only one side thereof, it shall then be conclusively presumed, in the absence of any express provision therein particularly excluding the same therefrom, that the transfer or other such grant thereof shall include the grantor's interest to the center of such waterway, canal, highway, road, street, alley, railroad, or other right of way; provided further, however, that no then existing valid right of way upon, across or over said property so transferred or conveyed or so presumed to be conveyed and no warranties with respect thereto shall be in any manner or to any extent impaired, prejudiced, or otherwise affected by any of the terms and provisions of this Part or because of the failure of such grantor or transferor to therein make special reference to such right of way or to include or exclude same therefrom.

9:2972. Nature of Part

This Part is remedial and is for the benefit of all persons heretofore as well as hereafter acquiring by or under such a transfer or other grant affecting such property, without express exception or reference in the description of such land, rights of way or other property therein set forth.

9:2973. Preservation of rights

Any person who has made a transfer or other grant affecting land so described, their heirs or assigns, whose rights may be affected hereby, shall have a period of one year from August 1, 1956, within which to preserve and protect such rights, by: (a) filing suit in each parish where such land is situated, asserting such rights, or (b) by recording a notarized declaration asserting such rights in the conveyance records of each parish where such land is situated within such one year period; and in case neither said method of preserving such rights is followed within one year from August 1, 1956, said rights shall be forever barred.

PART IV. TRANSFER OF LANDS ABUTTING ABANDONED ROADS, STREETS OR ALLEYS

9:2981. Presumption of grant of interest; in abandoned road

It shall be conclusively presumed that any transfer, grant, sale or mortgage of land and property abutting or contiguous to an abandoned road, street or alley, the dedication of which has been revoked, shall be held, deemed and construed to include all of grantor's or mortgagor's interest in and to said abandoned road, street, or alley, in the absence of any express provision therein particularly excluding the abandoned property therefrom; provided further, however, that no then existing valid servitude or rights of third parties in or on the abandoned property shall be in any manner or to any extent impaired, prejudiced, or otherwise affected by any of the terms and provisions of this Part.

9:2982. Part remedial

This Part is remedial and is for the benefit of all persons heretofore as well as hereafter acquiring, or holding mortgages, affecting such property, without express exception or reference to the abandoned road, street, or alley in the description of the property set forth in the instrument of sale, transfer, or mortgage.

9:2983. Preservation of rights

Any person who has made a transfer, grant, sale or mortgage affecting land so described, their heirs or assigns, whose rights may be affected hereby, shall have a period of one year from July 30, 1958 within which to preserve and protect such rights, by (1) filing suit in each parish where such land is situated, asserting such rights, or (2) by recording a notarized declaration asserting such rights in the conveyance records of each parish where such land is situated within such one year period; and in case neither said method of preserving such rights is followed within one year from July 30, 1958, said rights shall be forever barred.

9:2984. Construction

Nothing in this Part shall be construed to conflict with, affect, or repeal any of the provisions of Act 555 of 1956 and incorporated as R.S. 9:2971, 2972 and 2973.

9:2985 to 9:2987. [Blank]

PART V. DUAL OR FRAUDULENT CONTRACTS

9:2989. Dual contracts; definition; violations; penalties

A. As used in this Part the term "dual contracts" means two written contracts entered into between identical contracting parties in identical capacities concerning the same parcel of real property, one of which states the true and actual purchase price and one of which states a purchase price in excess of the true and actual purchase price and is used as an inducement for mortgage investors to make a loan commitment on such real property in reliance upon the stated inflated value.

B. A fraudulent instrument is any paper, document or other form in writing that is intentionally used as a subterfuge or device to induce the making of a loan or the extension of credit as a part of a transaction whereby either the title to real property is transferred or valuable improvements are placed on real property in this state, whether for the benefit of the inducer or another.

C. No person, firm, or corporation, or any agent or employee of any such firm or corporation shall, with intent to defraud:

(1) Make or issue a dual contract for the purchase of real property, or

(2) Substitute one instrument in writing for another and by such means cause the making of a loan or the extension of credit, with respect to transactions whereby either the title to real property is transferred or valuable improvements are placed on real property in this state, whether for the benefit of the inducer or another;

(3) Induce by any fraudulent instrument in writing the making of a loan or the extension of credit as a part of a transaction whereby either the title to real property is transferred or valuable improvements are placed on real property in this state, whether for the benefit of the inducer or another.

Whoever violates any provision of this Subsection shall be fined not more than one thousand dollars. For the second and all following violations the penalty shall be a fine of not less than one thousand dollars nor more than five thousand dollars.

Anything contained herein to the contrary notwithstanding; the provisions of this section shall not apply to loans made by mortgage investors who rely on an independent appraisal of the property in granting such loan.

CHAPTER 3. JUDICIAL SALES

PART I. IN GENERAL

9:3001. Persons authorized to make judicial sales

Judicial sales may be made by the sheriff, by an auctioneer of the parish or city in which the sale is to be made, or by the legal representative of the succession, minor, interdict, or insolvent property owner. In cases where the sale is not to be made by the legal representative, the judge ordering the sale shall direct that it be made by an auctioneer who has been agreed upon by the parties, or if the parties do not agree, by the sheriff or an auctioneer designated by the judge.

9:3002. Sales on credit; notes; security

The sheriff, or other person making sales of succession property on credit terms, shall be authorized to receive for the price the notes of the purchasers, and identify them by description in the adjudication. The security on the notes shall in all cases be approved by the vendor or the party representing him.

9:3003. Notes or bonds to be identified with sales

On the registering of proces verbals of sales in the office of the recorder or register of conveyances of the parish where the property so adjudicated may be situated, the recorder or register shall be authorized to identify with the sales the notes or bonds received, by his paraph, in order that he may cancel the mortgage when they shall have been paid.

CHAPTER 4. ASSIGNMENT OR TRANSFER OF CREDITS OR OTHER INCORPOREAL RIGHTS

PART I. IN GENERAL

9:3051. Transfer of claims for collection

When several parties have claims against the same defendant or defendants, arising out of a common transaction, such as claims of laborers for their wages, they, or any of them, may transfer their claims to any person or persons for collection by suit or otherwise. The transfer need not be supported by a valuable consideration but it shall be sufficient that it be in writing.

PART II. LOUISIANA ASSIGNMENT OF ACCOUNTS RECEIVABLE ACT

9:3101. Definitions

The following words, phrases, and terms as used in this Part shall be defined and construed as follows:

(1) "Accounts receivable" or "account" means and includes all or any part of any indebtedness owing to the assignor in connection with all or any part of the assignor's business, profession, occupation, or undertaking, including but not limited to the sale of goods or the performance of services or the leasing of movable property subject to the Louisiana Lease of Movables Act. "Accounts receivable" or "account" shall not mean or include:

(a) Indebtedness due to or arising out of claims in tort;

(b) Indebtedness evidenced by a promissory note, other than a lease note, or negotiable instrument; or

(2) "Assignment" means and includes any specific or general assignment, sale, or pledge, or any combination thereof, of any account and its proceeds evidenced in the manner described in this Part. The verb "assign" as used in this Part shall have the same meaning.

(3) "Assignee" means the person to whom an assignment is made.

(4) "Assignor" means the person who makes the assignment as the owner of the account or as the person entitled to receipts of the account.

(5) "Debtor" means a person who owes or will owe the account.

(6) "General assignment" means the assignment by the assignor, for the purpose of securing an obligation or transferring ownership, of:

(a) All or any portion of the assignor's presently existing and anticipated future accounts receivable arising out of specified operations conducted by the assignor; or

(b) All or portion of the assignor's presently existing and anticipated future accounts receivable due from all debtors or a specified debtor or debtors and arising out of all or any portion of the operations conducted by the assignor.

(7) "Perfected security interest" means an assignment of accounts receivable effective against third persons.

(8) "Person" means an individual, ordinary partnership, limited partnership, foreign partnership of any kind, association, joint venture, sale proprietorship, or foreign or domestic corporation, or any business entity.

(9) "Place of business" means:

(a) For an assignor:

(i) The location of the assignor's registered office as shown in the records of the secretary of state at the time of recordation of the notice of assignment if the assignor is a Louisiana corporation or a foreign corporation that has qualified to do business in Louisiana.

(ii) The location of the assignor's principal place of business as shown in the records of the secretary of state at the time of recordation of the notice of assignment if the assignor is a Louisiana partnership or partnership in commendam that has filed articles of partnership with the secretary of state, or a foreign partnership or foreign limited partnership that has qualified to do business in Louisiana.

(iii) The location in the state of the assignor's particular establishment at the time of recordation of the notice of assignment at or from which the accounts assigned are or may be contracted if the assignor is an individual or individuals, or an individual or individuals doing business under a trade name or as a proprietorship.

(iv) East Baton Rouge Parish, if the assignor is a foreign corporation that has not qualified to do business in Louisiana, a Louisiana partnership that has not filed articles of partnership with the secretary of state, a foreign partnership or foreign limited partnership that has not qualified to do business in Louisiana, or any other entity for which the conditions of (i) through (iii) of this Subparagraph do not apply.

(b) For an assignee:

(i) Any municipal or mailing address used by the assignee, located within or without the state of Louisiana, at the time of the recordation of the notice of assignment; or

(ii) The municipal or mailing address, located within or without the state of Louisiana, of the assignee's office or business establishment having supervision over the assignment at the time of recordation of the notice of assignment.

(10) "Profession" or "occupation" includes but is not limited to any employee's, agent's, or independent contractor's right to receive compensation or income of any nature.

(11) "Specific assignment" means any assignment other than a "general assignment."

9:3102. Validity and effect of an assignment

A. Between the parties every assignment shall operate as an assignment, sale, or pledge, or any combination thereof, depending upon the intent of the parties, at the time the parties enter into the first evidence of the assignment, regardless of the date of the filing of a notice of assignment.

B. Third parties are not affected by an assignment of accounts receivable until the filing of the notice of assignment in the manner prescribed by this Part. Once the notice of assignment is filed, the assignment shall be valid as to third parties and, as to them, shall constitute a completed assignment, sale, or pledge, or any combination thereof, of the accounts receivable covered, notwithstanding the fact that any debtors of the account are not notified of or do not consent to the assignment.

C. An assignee under a valid notice of assignment shall have a superior claim to the accounts assigned and their proceeds as against all other creditors whose claims or security arose or are perfected after the filing of the notice of assignment.

D. The provisions of this Part shall also apply to every general assignment, whether the assignment is of accounts existing at the time the general assignment is made or of future accounts that have not yet come into existence as of the date of the first evidence of the assignment; whether there is any delivery of the accounts to the assignee; and whether the debtors are notified of or consent to the assignment. As future accounts come into existence the assignee's rights shall rank from the date of filing of the notice.

E. The provisions of this Part shall also govern the perfection and the effect of perfection or nonperfection of a security interest in accounts receivable or their equivalent created under the law of another state when the law of that state prescribes that Louisiana law apply to such perfection and effect of perfection or nonperfection. Without limiting the foregoing, the filing of a notice of assignment in accordance with this Part shall cause the security interest to affect third parties to the same extent that the filing of a notice of assignment would cause an assignment under this Part to affect third parties. A notice of assignment filed with respect to a security interest created under the law of another state need not refer to the Louisiana Assignment of Accounts Receivable Act.

9:3103. Notice of assignment

A. An assignment under this Part is effective against third parties, when a "notice of assignment" in substantially the following form is filed:

NOTICE OF ASSIGNMENT

Date __________________________

______________________________ has made an assignment of accounts receivable to _______________ in accordance with the Louisiana Assignment of Accounts Receivable Act.

The Assignor's place of business is ________________________________

____________________________________________________________ (Street Address City Parish).

The accounts assigned are generally described as follows:

The Assignee's place of business is __________________________________

______________________________________________________________ (Street Address City Parish).

_______________________ Assignor

_______________________ Assignee

B. The notice of assignment shall be filed in the conveyance records of the parish of the assignor's place of business.

C. [Repealed by Acts 1990 RS, No. 1079, Section 8.]

9:3104. Filing of the notice

A. Upon receipt of a notice of assignment, the recorder of conveyances shall note on the face of the document the date, hour, and minute of filing.

B. All clerks of court, other than in the parish of Orleans, shall record the notice of assignment in the conveyance records. In the parish of Orleans the notice of assignment shall be recorded in the "Sale of Movables Book."

C. The recorder of conveyances shall cause the notice of assignment to be endorsed with the certificate of recordation.

D. Notice is effective against third parties from the date, hour, and minute of filing with the recorder of conveyances. In any event the assignment shall always be effective as between the parties even without filing.

E. The recorder of conveyances is bound to deliver to all persons who may demand it, a certificate of notices of assignment still in effect which have been filed. If there are none, the certificate shall declare this fact. The cost of the certificate charged by the recorder of conveyances shall be the same as charged for mortgage certificates.

9:3105. Evidence of an assignment

A. An assignment of accounts receivable, whether specific or general, made pursuant to this Part may be evidenced by any of the following methods:

(1) By writing or stamping upon the ledger sheets of the assignor.

(2) By a separate written act of assignment signed by the assignor.

(3) By programming the assignor's computer program to note the required information on the computer printout sheets.

B. Any of these methods shall be deemed evidence of an assignment for the purposes of this Part.

C. Any evidence of an assignment shall list the name of the assignee and may list the date of the assignment.

D. If there is a general assignment, it shall not be necessary to specifically describe the presently existing or future arising accounts receivable; to affect the assignor and assignee or to effect third parties a general description shall suffice.

E. It shall not be necessary for the perfection or the continued perfection of a general assignment for the assignor to maintain in his possession the documents or records of any account.

9:3106. Release and renewal of the notice of assignment

A. A notice of assignment may be cancelled and erased by the consent of the assignee evidenced by any form of release, under private signature or otherwise.

B. Partial releases are allowed and shall not affect the ranking of those accounts not released.

C. Upon presentation of an act of release, the recorder of conveyances shall note the cancellation and erasure upon the records of his office and the effect of the assignment shall then terminate to the extent intended by the act of release both as between the assignor and assignee and as to third parties.

D. The effect of a notice of assignment shall cease if the inscription has not been renewed by reinscribing within five years from the date of the filing of the original notice of assignment. Reinscription shall renew the effect of the notice of assignment for five years from the date of reinscription. Further renewals may be made from time to time, each renewal being effective for five years from the date of reinscription. On and after January 1, 1990, reinscriptions shall be made and shall be effective as provided in R.S. 9:3112.

E. The form for reinscription shall be substantially as follows:

Reinscription of Notice of Assignment

Date __________________

This is a reinscription of a Notice of Assignment between _______________, as Assignor, and ___________, as Assignee filed in the conveyance records of this Parish on the ____ day of ______, 19__ and recorded at ________________(Put in recordation information).

__________________ Assignee

F. A timely reinscription shall preserve the effective date of the original notice.

G. The recorder of conveyances shall receive fifty cents for each act of release, partial release, or notices of assignment of accounts receivable.

9:3107. Proceeds of an assignment

A. "Proceeds" includes whatever is received upon the sale, exchange, collection, or other disposition of an account or proceeds. Insurance payable by reason of loss or damage to the items relating to an account is proceeds, except to the extent that it is payable to a person other than a party to the assignment. Money, checks, deposit accounts, and the like are "cash proceeds." All other proceeds are "non-cash proceeds."

B. Except as otherwise agreed to by the parties, the assignee's interest in an account continues in any identifiable proceeds including collections received by the assignor.

C. In the event of insolvency proceedings instituted by or against an assignor, an assignee who has a valid notice of assignment filed has a perfected security interest in the account and in the following proceeds:

(1) In identifiable non-cash proceeds and in separate deposit accounts containing only proceeds.

(2) 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.

(3) 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.

(4) 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 Paragraph is:

(a) Subject to any right of set-off; and

(b) 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 (1) through (3) of Subsection C.

9:3108. Rights and liabilities of parties

A. Except as provided in Subsections B and C, an account debtor who has received written notice of the assignment will not be discharged from his debt if he pays anyone other than the assignee.

B. The rights of an assignee against the account 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 account debtor receives written notice from or on behalf of the assignee or the assignor of the assignment of the particular account of which he is debtor. In any case in which an account debtor is not notified of the assignment of the account made in compliance with the provisions of this Part and, in good faith, makes payment of the account in whole or in part to the assignor, or to a subsequent assignee, purchaser, or transferee, of the account who shall have notified the debtor of the assignment, purchase, or transfer, then to the extend 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.

C. The account debtor may, at his option, commence concursus proceedings instead of making payment to the debtor or subsequent assignee as provided in Subsection B.

9:3109. Exclusiveness of method

This Part is intended to provide an additional method of assigning accounts receivable prior to the time Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.) becomes effective, and thereafter with regard to assignments of accounts receivable that are exempt or otherwise excluded from coverage thereunder, and shall not have the effect of repealing any other provision of law authorizing the assignment of accounts receivable.

9:3110. Prior assignments

A. This Part shall not impair or make invalid any assignment of accounts receivable made and perfected prior to the effective date of this Part.

B. An assignor or assignee of accounts receivable made or perfected prior to the effective date of this Part may elect to come under the provisions of this Part by filing a notice of assignment and by otherwise complying with this Part.

9:3111. Short Title

This Part shall be known and may be cited as the Louisiana Assignment of Accounts Receivable Act.

9:3112. Relation to Chapter 9 of the Louisiana Commercial Laws

A. This Part shall apply to assignments of accounts receivable 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 assignments that affect accounts arising after the effective date and those continuing assignments that secure future obligations, lines of credit, and other ongoing credit facilities, as well as to assignments of accounts receivable entered into on or after Chapter 9 of the Louisiana Commercial Laws becomes effective that are exempt or otherwise excluded from coverage thereunder; provided that this Part shall not apply to assignments of accounts arising out of the leasing of immovable property under assignment agreements entered into after September 1, 1990.

B. (1) This Section sets forth the exclusive methods both of inscribing assignments of accounts receivable entered into on or after Chapter 9 of the Louisiana Commercial Laws, R.S. 10:9-101, et seq., becomes effective, but which affect accounts not subject to Chapter 9, and of reinscribing notices of assignments or accounts receivable on or after January 1, 1990, originally filed under this Chapter.

(2) Filings on or after January 1, 1990, relating to assignments of accounts receivable entered into after Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.) becomes effective but which affect accounts not subject to Chapter 9, shall be accomplished by filing a financing statement conforming to the requirements of Chapter 9, in the location provided in R.S. 10:9-401(1) without regard to R.S. 10:9-401(2). Such a financing statement shall state that the assignment is made pursuant to this Part.

(3)(a) Filings of reinscriptions of notices of assignments of accounts receivable originally filed under this Chapter shall be accomplished by filing a continuation statement under R.S. 10:9-403 in the location provided in R.S. 10:9-401(1), without regard to R.S. 10:9-401(2) or R.S. 9:3103(C). Such a continuation statement may be filed at any time within the five-year period provided under R.S. 9:3106(D). The continuation statement need be signed only by the secured party and must include the following:

(i) The name and address of the assignor/debtor.

(ii) The social security number or taxpayer identification number, as applicable, of the assignor/debtor.

(iii) The name and address of the assignee/secured party.

(iv) A general description of the assigned "accounts".

(v) The date on which the original notice of assignment was filed.

(vi) The parish in which the notice of assignment was originally filed and the recordation information therefor.

(b) The filing officer may charge fees as provided under R.S. 10:9-403(5) in connection with the filing of such continuation statements.

C. Upon timely filing of a continuation statement, the effectiveness of the original notice is continued for five years after the date of filing of the continuation statement, whereupon it lapses unless another continuation statement is filed within six months prior to such lapse. Succeeding continuation statements may be filed within six months prior to the expiration of each five-year period in the same manner to continue the effectiveness of the original notice. Following such reinscriptions this Part (and not Chapter 9 of the Louisiana Commercial Laws) shall continue to apply to assignments originally made pursuant to this Part.

PART III. ASSIGNMENT OF PROCEEDS OF CROP FINANCING

9:3121. Crop financing; assignment of interest by agriculture producer

A. When an agricultural producer, as defined in R.S. 3:3402, obtains financing for the production of a crop, and the total amount of the proceeds of that financing has not been disbursed, the agricultural producer may assign his interest in the undisbursed proceeds of financing for the current crop year to one or more vendors of supplies, materials, or services used in the production or processing of that crop in that crop year. The vendor to whom the assignment is made shall notify the lending institution of the existence of the assignment. The notice shall be transmitted by certified mail, return receipt requested, or by actual delivery receipted for by the lending institution. Upon receipt of the notice, the lending institution shall make any future payments of the undisbursed proceeds jointly, or payable jointly, to the agricultural producer and the vendor until the total amount of the assignment has been paid by such joint payments.

B. The notice of assignment shall contain the following information:

(1) The name and address of the agricultural producer.

(2) The name and address of the lending institution.

(3) The total amount of the proceeds which are assigned.

(4) A description of the crop or crops and the location thereof as furnished to the vendor by the agricultural producer.

(5) The types and amounts of supplies, materials, or services purchased.

(6) The date on which the supplies, materials, or services were purchased.

(7) A copy of the invoice or purchase order for the supplies, materials, or services.

(8) A copy of the contract of assignment.

C. No assignment shall be made for less than one thousand dollars.

D. If the agricultural producer makes multiple assignments, the assignments shall rank in the order they are received by the lending institution.

E. The vendor may terminate an assignment by written instrument transmitted by certified mail, return receipt requested, or by actual delivery receipted for by the lending institution.

F. The assignment shall not abridge or affect any right of offset or compensation which the lending institution may have with respect to any undisbursed proceeds.

G. No lending institution shall incur any liability as a result of compliance with the provisions of this Section.

CHAPTER 5. NEW HOME WARRANTY ACT

9:3141. Purpose

The Legislature finds a need to promote commerce in Louisiana by providing clear, concise, and mandatory warranties for the purchasers and occupants of new homes in Louisiana and by providing for the use of home owners' insurance as additional protection for the public against defects in the construction of new homes. This need can be met by providing for uniform building standards in those parishes and municipalities that have not yet adopted building codes; by requiring that all new residential buildings comply with building standards; by adopting provisions that clearly state the scope and the time of warranties; by providing for insurance protecting home owners from breaches of warranty; and by making the required warranties mandatory in most cases.

9:3142. Short title

This Chapter shall be known and may be cited as the "New Home Warranty Act."

9:3143. Definitions

For purposes of this Chapter the following words, phrases, and terms shall be defined and construed as follows:

(1) "Builder" means any person, corporation, partnership, or other entity which constructs a home, including a home occupied initially by its builder as his residence.

(2) "Building standards" means the standards contained in the building code, mechanical-plumbing code, and electrical code in effect in the parish, city, or other local political subdivision where a home is to be located, at the time construction of that home is commenced, or, if the parish, city, or other local political subdivision has not adopted such codes, the Standard Building Code, together with any additional performance standards, if any, which the builder may undertake to be in compliance.

(3) "Home" means any new structure designed and used only for residential use.

(4) "Initial purchaser" means any person for whom a home is built or the first person to whom a home is sold upon completion of construction.

(5) "Major structural defect" means any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load-bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary, or is otherwise unlivable:

(a) Foundation systems and footings.

(b) Beams.

(d) Lintels.

(e) Columns.

(f) Walls and partitions.

(g) Floor systems.

(h) Roof framing systems.

(6) "Owner" means the initial purchaser of a home and any of his successors in title to a home during the time the warranties provided under this Chapter are in effect.

(7) "Warranty commencement date" means the date that legal title to a home is conveyed to its initial purchaser or the date the home is first occupied, whichever occurs first.

9:3144. Warranties; exclusions

A. Subject to the exclusions provided in R.S. 9:3144(B), every builder warrants the following to the owner:

(1) One year following the warranty commencement date, the home will be free from any defect due to noncompliance with the building standards.

(2) Two years following the warranty commencement date, the plumbing, electrical, heating, cooling, and ventilating systems exclusive of any appliance, fixture, and equipment will be free from any defect due to noncompliance with the building standards.

(3) Ten years following the warranty commencement date, the home will be free from major structural defects due to noncompliance with the building standards.

B. Unless the parties otherwise agree in writing, the builder's warranty shall exclude the following items:

(1) Fences, landscaping, including, but not limited to, sodding, seeding, shrubs, trees, and plantings, as well as off-site improvements, all driveways and walkways, or any other improvement not a part of the home itself.

(2) After the first year, the concrete floor of a basement and the concrete floor of an attached garage that is built separate from a foundation wall or other structural element of the home.

(3) Damage to real property which is not part of the home covered by the warranty and which is not included in the purchase price of the home.

(4) Any damage to the extent it is caused or made worse by any of the following:

(a) Negligence, improper maintenance, or improper operation by anyone other than the builder or any employee, agent, or subcontractor of the builder.

(b) Failure by anyone other than the builder or any employee, agent, or subcontractor of the builder to comply with the warranty requirements of manufacturers of appliances, equipment, or fixtures.

(c) Failure by the owner to give written notice by registered or certified mail to the builder of any defect within a reasonable time.

(d) Any change of the grading of the ground by anyone other than the builder, or any employee, agent, or subcontractor of the builder.

(e) Any change, alteration, or addition made to the home by anyone after the initial occupancy by the owner, except any change, alteration, or addition performed by the builder, or any employee, agent, or subcontractor of the builder.

(f) Dampness, condensation, or other damage due to the failure of the owner to maintain adequate ventilation or drainage.

(5) Any loss or damage which the owner has not taken timely action to minimize.

(6) Any defect in, or any defect caused by, materials or work supplied by anyone other than the builder, or any employee, agent, or subcontractor of the builder.

(7) Normal wear and tear or normal deterioration.

(8) Loss or damage which does not constitute a defect in the construction of the home by the builder, or any employee, agent, or subcontractor of the builder.

(9) Loss or damage resulting from war, accident, riot and civil commotion, water escape, falling objects, aircraft, vehicles, acts of God, lightning, windstorm, hail, flood, mudslide, earthquake, volcanic eruption, wind driven water, and changes in the level of the underground water table which are not reasonably foreseeable.

(10) Any damage caused by soil movement which is covered by other insurance.

(11) Insect damage.

(12) Any loss or damage which arises while the home is being used primarily for a nonresidential purpose.

(13) Any condition which does not result in actual physical damage to the home.

(14) Bodily injury or damage to personal property.

(15) Any cost of shelter, transportation, food, moving, storage, or other incidental expense related to relocation during repair.

(16) Any defect not reported in writing by registered or certified mail to the builder or insurance company, as appropriate, prior to the expiration of the period of coverage of that defect plus thirty days.

(17) Consequential damages.

(18) Any loss or damage to a home caused by soil conditions or soil movement if the home is constructed on land owned by the initial purchaser and the builder obtains a written waiver from the initial purchaser for any loss or damage caused by soil conditions or soil movement.

C. The provisions of R.S. 9:3144(A) establish minimum required warranties and shall not be waived by the owner or reduced by the builder provided the home is a single family dwelling to be occupied by an owner as his home.

9:3145. Required notice

Before undertaking any repair himself or instituting any action for breach of warranty, the owner shall give the builder written notice, by registered or certified mail, advising him of all defects and giving the builder a reasonable opportunity to comply with the provisions of this Chapter.

9:3146. Prescription

Any action to enforce any warranty provided in this Chapter shall prescribe thirty days after the expiration of the appropriate time period provided in R.S. 9:3144.

9:3147. Insurance

All or part of the builder's obligation under any warranty required in this Chapter may be insured by the builder for the benefit of the purchaser through an insurance company authorized to transact business in this state.

9:3148. Transfer of warranty and insurance

Any warranty imposed under the provisions of this Chapter and any insurance benefit shall automatically transfer without charge, to a subsequent owner who acquires title to the home. Any transfer of the home shall not extend the duration of any warranty or insurance coverage.

9:3149. Violations; limitations

A. If a builder violates this Chapter by failing to perform as required by the warranties provided in this Chapter, any affected owner shall have a cause of action against the builder for actual damages, including attorney fees and court costs, arising out of the violation. The damages with respect to a single defect shall not exceed the reasonable cost of repair or replacement necessary to cure the defect, and damages with respect to all defects in the home shall not exceed the original purchase price of the home.

B. The parties may provide for the arbitration of any claim in dispute. Any arbitration shall comply with, and may be binding only to the extent provided in R.S. 9:4201 et seq.

9:3150. Exclusiveness

This Chapter provides the exclusive remedies, warranties, and prescriptive periods as between builder and owner relative to home construction and no other provisions of law relative to warranties and redhibitory vices and defects shall apply. Nothing herein shall be construed as affecting or limiting any warranty of title to land or improvements.

CHAPTER 6. AUCTION SALES, JUDICIAL SALES, AND EXPROPRIATION

[Effective Date: Text of Chapter effective on January 1, 1995.]

9:3151. Sale by auction, definition

The sale by auction is that which takes place when the thing is offered publicly to be sold to whoever will give the highest price.

9:3152. Voluntary or forced sale

This sale is either voluntary or forced: voluntary when the owner himself offers his property for sale in this manner; forced, when the law prescribes this mode of sale for certain property, such as that of minors.

9:3153. Auction sale by officers of justice

The sale by auction, as it is made by officers of justice, is treated of separately, under the chapter on judicial sales.

9:3154. General rules governing sales by auction

The sale by auction, whether made at the will of the seller, or by direction of the law, is subjected to the rules hereafter mentioned.

9:3155. Sale through public officer

It can not be made directly by the seller himself, but must be made through the ministry of a public officer, appointed for that purpose.

9:3156. Announcement of conditions of sale and demand for bids

This officer, after having received in writing, from the seller, the conditions of the sale, must proclaim them, in a loud and audible voice, and afterwards propose that a bid shall be made for the property thus offered.

9:3157. Adjudication to highest bidder

When the highest price offered has been cried long enough to make it probable that no higher will be offered, he who has made the offer is publicly declared to be the purchaser, and the thing sold is adjudicated to him.

9:3158. Adjudication as completion of sale

This adjudication is the completion of the sale; the purchaser becomes the owner of the article adjudged, and the contract is, from that time, subjected to the same rules which govern the ordinary contract of sale.

9:3159. Payment of price before delivery

If the adjudication be made on condition that the price shall be paid in cash, the auctioneer may require the price immediately, before delivering possession of the thing sold.

9:3160. Sale of immovable, retention of price until execution of act

If the object adjudged is an immovable for which the law requires that the act of sale shall be passed in writing, the purchaser may retain the price, and the seller the possession of the thing, until the act be passed.

This act ought to be passed within twenty-four hours after the adjudication, if one of the parties require it; he who occasions a further delay is responsible to the other in damages.

9:3161. Resale for non compliance with bid; adjudicatee's liability for deficiency

In all cases of sale by auction, whether or movables or immovables, if the person to whom adjudication is made, does not pay the price at the time required, agreeably to the two preceding articles, the seller at the end of ten days, and after the customary notices, may again expose to public sale the thing sold, as if the first adjudication had never been made; and if at the second crying, the thing is adjudged for a smaller price than that which had been offered by the person to whom the first adjudication was made, the latter remains a debtor to the vendor, for the deficiency and for all the expenses incurred subsequent to the first sale. But if a higher price is offered for the thing than that for which it was first adjudged, the first purchaser has no claim for the excess.

9:3162. Resale, bid by first adjudicatee prohibited

At this second crying, the first purchaser can not be allowed to bid, either directly or through the intervention of another person.

9:3163. Rejection of indorser of purchase price notes, effect on adjudication

When a thing is exposed to public sale, with notice that the buyer shall give indorsed notes for the price, he is bound, immediately after the sale, if required, to acquaint the auctioneer or the seller with the name of the person whom he offers for indorser, and if this indorser does not suit the seller, or in his absence the auctioneer, the adjudication is considered as not having been made.

9:3164. Liability of seller refusing to accept solvent indorser

The refusal by the seller to receive the indorser whom the purchaser offers, renders him responsible in damages to the latter, if it be proved that the indorser proposed is good and solvent.

9:3165. Liability for unauthorized bidding in name of another

The adjudication can only be made to a bidder present, or properly represented. The person who bids in the name of another, without sufficient authority to bind him, is considered as having bought on his own account, and is answerable for all the consequences of the adjudication.

PART II. JUDICIAL SALES

SUBPART A. IN GENERAL

9:3166. Kinds of judicial sales

Sales which are made by authority of law are of two kinds:

1. Those which take place when the property of a debtor has been seized by order of a court, to be sold for the purpose of paying the creditor.

2. Those which are ordered in matters of succession or partition.

9:3167. General rules for judicial sales

Judicial sales are subject to the rules laid down above for public sales in general, in all such things as are not contrary to the formalities expressly prescribed for such sales, and with the modifications contained hereafter.

SUBPART B. SEIZURE OR EXECUTION

9:3168. Execution sale, persons authorized to make

The sale on seizure is made at public auction by the sheriff or other officer charged with the execution of the judgment.

9:3169. Rescission for fraud or nullity; redhibition not permitted

Whatever may be the vices of the thing sold on execution, they do not give rise to the redhibitory action; but the sale may be set aside in the case of fraud, and declared null in cases of nullity.

9:3170. Rights acquired at execution sale

This sale on execution transfers the property of the thing to the purchaser as completely as if the owner had sold it himself; but it transfers only the rights of the debtor such as they are.

9:3171. Rights of buyer in case of eviction

The purchaser evicted from property purchased under execution shall have his recourse for reimbursement against the debtor and creditor, as provided in Article 2379 of the Code of Civil Procedure.

SUBPART C. SUCCESSION PROPERTY

9:3172. Authority to order succession sale; persons authorized to sell

The judicial sale of succession property is ordered by the judge of the court to which this jurisdiction is specially confided.

Representatives of successions shall have the right to cause sales of the property administered by them to be made either by the sheriff or an auctioneer, or to make it themselves, but in the event of making the sales themselves, they shall receive no commission therefor.

9:3173. Transfer of title

The adjudication made and recorded by the sheriff, auctioneer or representative of the succession, is a complete title to the purchaser, and needs not be followed by an act passed before a notary.

9:3174. Warranties

All the warranties to which private sales are subject exist against the heir in judicial sales of the property of successions.

9:3175. Purchase of property by heirs of succession

Heirs may purchase the property of the succession to the amount of their proportion, and are not obliged to pay the purchase money, until a liquidation is had, by which it is ascertained what balance there is in their favor or against them.

PART III. EXPROPRIATION

9:3176. Expropriation, basis of right

The first law of society being that the general interest shall be preferred to that of individuals, every individual who possesses under the protection of the laws, any particular property, is tacitly subjected to the obligation of yielding it to the community, wherever it becomes necessary for the general use.

9:3177. Taking property by authority of law

If the owner of a thing necessary for the general use, refuses to yield it, or demands an exorbitant price, he may be divested of the property by the authority of law.

9:3178. Price to be paid

In all cases, a fair price should be given to the owner for the thing of which he is dispossessed.

9:3179. Payment of price before expropriation

This price ought to be paid to the owner before the expropriation, that is to say, before he has delivered the possession, or it has been finally taken from him, in case of resistance.

9:3180. Petition for expropriation by certain corporations; prescription of claims for damages occasioned

Whenever any corporation, constituted under the laws of this State, for the construction of a railroad, plankroad, turnpike road, a canal for navigation, or for the purpose of transmitting intelligence by magnetic telegraph, can not agree with the owner of any land which may be wanted for its purchase, it shall be lawful for such corporation to apply to petition to the judge of the district court in which such land may be situated, or if it extends into two districts, to the judge of the district in which the owner thereof resides, and if the owner does not reside in either district, then to the judge of either district, describing the lands necessary for their purposes, with a plan of the same, and a statement of the improvements thereon, if any, and the name of the owner thereof, if known and present in the State, with a prayer that the land be adjudged to such corporation upon the payment to the owner of all such damages as he may sustain in consequence of the expropriation of his land for such public work. All claims for land, or damages to the owner caused by its expropriation for the construction of any public works, shall be barred by two years' prescription, which shall commence to run from the date at which the land was actually occupied and used for the construction of the works.

9:3181. Notice to owner, assessment of damages

On the presentation of such petition to the judge, it shall be his duty to indorse thereon an order directing the clerk of the court to give notice to the owner according to law. The clerk shall thereupon issue a copy of the petition and order, together with a notice of the time at which a jury will be impanneled [impaneled] to assess the value of the land described in the petition, to the sheriff, who shall make service and return therefor as in ordinary cases.

9:3182. Impanelling of jury, procedures and verdict

Immediately after the order shall have been made by the Judge, it shall be the duty of the Clerk and Sheriff to make a list of fifty freeholders, residents of the parish in which the land lies, and not interested in the issue to be tried, from which list thirty-six freeholders shall be drawn and summoned to attend on the day fixed in the order of court, provided that the summons shall be served on the freeholders not less than five calendar days, prior to the date fixed for attendance. And from the thirty-six freeholders so summoned, a jury of twelve shall be empaneled, which shall, by a verdict in which at least three-fourths of their number shall concur, determine, after hearing the parties and their evidence, what is the value of the land described in the petition with its improvements, and what damages, if any, the owner would sustain, in addition to the loss of the land, by its expropriation. If, for any reason, a jury cannot be empaneled from the thirty-six freeholders whose names are drawn as above set forth, then, from the remaining fourteen freeholders, the court shall have the right to summon as many additional freeholders as the court may deem necessary to complete the empanelling of the jury. In empanelling the jury, either party may challenge for cause and each party shall be entitled to the same number of peremptory challenges as is allowed by law in the trial of ordinary civil suits.

9:3183. Basis for determining property value

In estimating the value of the property to be expropriated, the basis of assessment shall be the true value which the land possessed before the contemplated improvement was proposed, and without deducting therefrom any amount for the benefit derived by the owner from the contemplated improvement or work.

9:3184. Appeal; payment of award to owner or deposit in court as entitling plaintiff to property

No party to any expropriation proceeding shall be entitled to or granted a suspensive appeal from any order, judgment, or decree rendered in such proceeding, whether such order, judgment, or decree is on the merits, exceptions, or special pleas and defenses, or any or all of them. The whole of the judgment, however, shall be subject to the decision of the appellate court on review under a devolutive appeal.

When a devolutive appeal is taken by either party, payment to the owner of the amount awarded by the trial court, or the deposit thereof in the registry of the court, entitles the plaintiff to the property described in the judgment in the same manner as would a voluntary conveyance. If any change in the amount awarded is made on such appeal, the plaintiff shall pay the additional assessment or recover the surplus paid.

9:3185. Curator ad hoc for absent defendant; price paid into registry of court

If the owner of any land required for works of public utility be unknown or absent, and have left no known agent in the State, or if he cannot be found and served after diligent effort though he may still reside within the State, it shall be the duty of the court to appoint a curator ad hoc to represent and act for such owner; and the price which he may be entitled to receive shall be deposited into the court by which the expropriation is made, subject to his order; the receipt of the Clerk of Court for the price shall vest the title in the person paying for the land, in the same manner as if it were paid to the owner in person.

9:3186. Rights of owner when excessive land demanded

If any owner shall be of opinion that the quantity of land sought to be purchased by any corporation exceeds that which is reasonably necessary for the purpose intended by the company, it shall be lawful for him to file a special plea, setting forth this fact, and in such case the court shall determine not only the value of the land to be expropriated, but also the extent of land over which the company may exercise the forced expropriation; the whole always subject to the decision of the court on appeal, which appeal, however, as provided by Article 2634, shall not suspend the execution of the judgment of the lower court.

9:3187. Property exempt from expropriation; exceptions

The right of expropriation shall in no case extend to graveyards, nor the dwelling house, yard, garden, and other appurtenances thereof, unless the jury shall find, by their verdict, that the line of the proposed railroad or canal can not be diverted from that proposed by the company without great public loss or inconvenience.

9:3188. Cost of proceedings

If a tender be made by any corporation of the true value of the land to the owner thereof, before proceeding to a forced expropriation, the costs of such proceedings shall be paid by the owner.

9:3189. Effect of judgment

Judgments directing the expropriation of lands to corporations shall be valid against all persons, including minors or persons interdicted.

9:3190. Procedures mandatory

The proceedings set forth in the foregoing articles shall be required in all cases of expropriation of property necessary for the general use.

9:3191. Effect of expropriation on rights of third persons

If, after the expropriation, any individual pretends that he had rights respecting the thing, either as owner or as creditor, he shall have recourse against the person who received the price.

CHAPTER 7. RELATIONSHIP BETWEEN THE CIVIL CODE TITLE ON SALE AND THE COMMERCIAL LAWS

9:3192. Rule governing conflict between sale and commercial laws

In case of conflict between the provisions of Title VII of Book III of the Civil Code, governing sales and any provisions of any special legislation, such as those contained in Titles 9 and 10 of the Louisiana Revised Statutes of 1950 and the Louisiana Lease of Movables Act, the latter shall prevail with regard to transactions subject thereto.