8. Code III: Security Devices Flashcards
1
Q
Liberative Prescription on a Promissory Note
A
5 years from the date payment is EXIGIBLE
interrupted by payment
when secured by a mortgage - the mortgage (accessory) prescribes when the promissory note (principal) prescribes
2
Q
Judicial Mortgage
A
created when the judgement creditor of a money judgement files a certified copy of the judgement in the mortgage records
effective against third parties 10 years from the date of the judgement
effective as to all of the debtor’s rights in immovable property located in the parish where filed
general mortgage
3
Q
Suretyship
A
an accessory contract
by which a person binds himself to a creditor
to fulfill the obligation of another
upon the failure of the latter to do so
depends on the existence of a principal obligation to be enforceable
4
Q
Commercial Surety
A
(a) surety is paid for giving promise or pay, or
(b) principal or surety is a business entity, or
(c) the guaranteed obligation arises from a commercial transaction
5
Q
Extinguishment of Suretyship by Material Impairment of the Real Security
A
only for commercial sureties
release of the mortgage over the real property (but only to the extent the impairment PREJUDICES the surety)
6
Q
Extinguishment of Suretyship by Modification
A
only for commercial sureties
obligee modifies the obligation in some material way without the surety’s consent (but only to the extent the modification HARMS the surety)
7
Q
Mortgage property description did not include a number of buildings on the lot of land, only a description of the lot of land itself
A
the mortgage of a corporeal immovable includes component parts. it is not necessary to describe the component parts to have an effective mortgage.
8
Q
Privilege: Definition
A
a privilege is a form of legal security
that is placed on certain property of a debtor
without the debtor’s consent
- it arises by operation of law
9
Q
Security Right
A
a legal right against another person or against a piece of property
designed to help a creditor collect on a debt
accessory right
10
Q
Surety’s Rights Against Debtor
A
- reimbursement
- subrogation
11
Q
Legal Mortgage
A
Legal Mortgages arise as a matter of law. It is a general mortgage because attaches to all immovable property owned by debtor.
12
Q
Judicial Mortgage
A
Judicial Mortgages arises when a party who has obtained a judgement for the payment of money files a certified copy of the judgment in the mortgage records of any parish where the judgment debtor’s immovable property is located.
A judicial mortgage automatically encumbers all the judgment debtor’s present and future rights in immovable property located in the parish, though the effect of a judicial mortgage must be reestablished every 10 years.
13
Q
Mortgage Lapse
A
The mortgage records are self-purging, and mortgages eventually lapse, becoming ineffective against third parties.
Any mortgage is effective on the public records for 10 years after the date on the act of mortgage. The period is measured according to the date of the mortgage, NOT the date of filing.
14
Q
Reinscription of Judicial Mortgage
A
- Go back to court and revive judgment
- After revival and before lapse (10 years after entry of judgment) file in MORTGAGE records
15
Q
Pledge
A
= lessor’s rights in the lease of an immovable and its rents
owner of an immovable gives creditor their rights on more or more leases of that immovable property and its rents to secure an obligation owner/lessor to a creditor
16
Q
Pledge Creation
A
(same as mortgage)
- written agreement
- signed by pledgor (owner of immovable)
- stating amount/ maximum
- describing PRECISELY the nature and situation of the immovable property
17
Q
Effectiveness of Pledge as to 3P
A
effective as to 3P if filed in MORTGAGE records in parish where immovable property is located
18
Q
Effectiveness of Pledge as to Lessees
A
WRITTEN notice of the pledge binding on the lessee is required
(creditor directly receives payments after lessee gets written notice)
19
Q
Special Rules of Pledges
A
- Prohibition is invalid (restriction/ triggering release/ termination)
- Modification without consent effective against pledgee IF:
- good faith AND
- rent not fully owed (if past due rent) WHEN notice delivered to lessee
20
Q
Privileges
A
real security devices that arise by operation of law (like mortgage but involuntary)
21
Q
Privilege Types
A
- privilege of repairpeople
- lessor’s privilege
- vendor’s privilege
22
Q
Privilege of Repairpeople
A
privilege in the thing that they made/ repaired to secure FEE for repair service/ part/ labor
23
Q
Privilege of Repairpeople Exists ONLY IF:
A
- repairperson is in POSSESSION of the goods
IF NOT:
- for 120 days from last day on which materials and/or labor were supplied (120 days from last day of WORK not last day of possession)
24
Q
Lessor’s Privilege
A
privilege on all of the lessee’s movable property located ON the leased immovable property to secure RENTAL PRICE and ANY OTHER LEASE OBLIGATIONS
25
Lessor's Privilege is Over:
things ON the leased premises OR
privilege is extended for 15 days after property is removed IF:
1. the lessor did not consent AND
2. the movables can still be identified as the lessee's property
26
Vendor's Privilege
privilege on any movable or immovable property sold to secure the PURCHASE PRICE
27
Vendor's Privilege Over Movables
Movable must remain in buyer's possession
28
Vendor's Privilege Over Immovables
must be recorded in MORTGAGE records
AND
must be a credit sale
- act of credit sale must be recorded in BOTH mortgage and conveyance records and act of sale evidences that price has not yet been paid
29
Act of Credit Sale Requirements for Vendor’s Privilege
1. must be recorded in BOTH mortgage and conveyance records
and
2. act of sale evidences that price has not yet been paid
30
A recorded vendors privilege beats a prior mortgage IF ...
act of credit sale is recorded with in **7 days** of the execution of the act of sale
**15 days** if recording in different parish than where the act of credit sale is located
31
Ranking of Privileges
- repairperson > lessor
- lessor > vendor
- vendor > repairperson
*security interest > ALL privileges (except repairman in possession) - regardless of timing*
32
Suretyship
K whereby surety promises to pay creditor if debtor does not
33
Terms of Suretyship
surety binds himself to a creditor to fulfill debt of obligor upon his failure to do so
34
Suretyship depends on ____________ to be enforceable
Suretyship depends on the **existence of a principal obligation** to be enforceable
35
Form for Suretyship
(1) writing (act under private signature)
(2) express (clear and unambiguous about surety's promise to pay)
36
Ostensible Suretyship
recharacterization of apparent solidarity liability of a co-obligor as SURETY IF:
(1) principal cause of K with creditor is to **guarantee performance of the obligation**
AND
(2) the **creditor** clearly knows this
*e.g. parent co-signing car loan*
37
Type of Surety
1. legal
2. commercial
3. ordinary
38
Commercial Suretyship
(a) surety is paid for giving promise to pay
(b) surety or debtor is a business entity OR
(c) principal obligation or suretyship K arises out of a commercial transaction
39
Ordinary Suretyship
default if not legal or commercial
*(nonbusiness/ uncompensated/ personal guarantees)*
40
Defenses Where Type of Suretyship is RELEVANT
- **material modification of obligation** without surety's consent
- **impairment of collateral** without surety's consent
41
Impairment of Collateral Without Surety's Consent
- if ordinary suretyship = EXTINGUISHED
- if commercial suretyship = extinguished to extent modification/ impairment **actually injures** the surety
42
Commercial Suretyship Impairment of Collateral Without Surety's Consent Burden
burden on creditor to show extent surety is NOT injured
43
material modification of obligation without surety's consent only applies for _____________ and ________ suretyships
Ordinary and commercial suretyships
44
Defenses Where Type of Suretyship is NOT RELEVANT
- defenses of principal obligor can be asserted by surety
- remission of principal obligor
45
Defenses of Principal Obligor
*type of suretyship irrelevant*
vices of consent/ legality
NOT: lack of capacity/ discharge in bankruptcy
46
Remission of Principal Obligor
*type of suretyship irrelevant*
surety's accessorial obligation is **released** if creditor REMITS principal obligation
- remission of co-sureties
47
Remission of Co-Sureties
releasing one co-surety remits THAT surety's virile share
(default = equal per capital division of OG debt)
48
Waiver of Surety Defenses
any or all 4 can be waived by surety
K "qualified, conditioned, or limited in any lawful manner"
49
Surety's Rights Against Debtor
1. reimbursement
2. subrogation
50
Reimbursement
- if exigible = surety has right to seek reimbursement from debtor
- if not exigible = NO reimbursement (when principal obligation prescribed/ extinguished)
51
Subrogation
surety steps into creditor's shoes, exercising all rights he had against debtor
- if full payment = all rights
- if surety pays only part = surety's subrogation right subordinate to creditor's right to collect remainder of debt
52
Exigible
due and owing
53
Rights against Co-Surities
*solidarily liable co-obligors*
1. contribution
54
Contribution
if one of multiple sureties pays creditors, paying surety can collect contribution of non-paying sureties' virile shares
55
Involuntary Contribution
if 1 surety is unable to contribute surety, then reallocated to other in equal shares
56
Continuing Guarantees
surety agrees to pay general future indebtedness
surety can terminate by NOTICE TO CREDITOR
57
Termination by Notice to Creditor
applies after notice given = **prospective termination**
also includes any obligation creditor must allow debtor to incur after
58
Creditor Learns that Surety Died
sufficient notice to terminate suretyship
59
Mortgage
a real accessory right that allows mortgagee to have immovable property seized and sold to pay secured debt in preference to other claims
60
Mortgage attaches to _________
immovable property and related rights ONLY.
61
Mortgage depends _____________
on the existence of valid and enforceable principal obligation.
62
Types of Mortgages
1. legal
2. judicial
3. conventional
63
Legal Mortgage
arises as a matter of law
64
Judicial Mortgage
creditor on a money judgement files a certified copy of judgment in mortgage records where debtor has immovables
65
Prescription of Money Judgment
10 years after rendered
must be revived in ordinary proceeding filed every 10 years
66
Conventional Mortgage
created by CONTRACT with debtor
Extends only to specific identified property
67
Conventional Mortgage Creation Requirements
1. written agreement
2. signed by mortgagor
3. state amount OR max amount secured
3. precise description of the immovable property
68
Conventional Mortgage Creation Requirements: Signature by Mortgagor
- mortgagee need not sign (consent presumed)
- can be someone on behalf of mortgagor
- no authentic act required
- no paraph required
69
Mortgagor NEED NOT BE _______
OBLIGOR
70
In Rem/ Non- Recourse Mortgage
= mortgage securing obligation not owned by property owner
71
Conventional Mortgage Creation Requirements: State Amount or Max Amount Secured
- stated amount plus interest
- fluctuating line of credit (MUST STATE A DOLLAR FIGURE OF MAX AMOUNT OUTSTANDING)
72
Conventional Mortgage Creation Requirements: Precise Description of Immovable Property
describe precisely the **nature and situation** over which the mortgage is given
LEGAL DESCRIPTION
73
Conventional Mortgage Creation Requirements: Precise Description of Immovable Property
what is NOT sufficient
- street address
- omnibus description
- general transfer of future property (specific description of future property is ok)
74
State Law/ Privilege Alternatives to Mortgage Rights
state law provides VENDORS of immovable rights similar to mortgage
*e.g. dissolution for failure to pay purchase price/ resolutory condition/ nullity of sale*
75
Making Mortgages Effective Against 3P
1. recording
2. inscription not lapsed
76
Recording Mortgage - Public Records Doctrine
mortgage is effective against 3P when entire ACT of mortgage is filed for registry in the MORTGAGE records of parish where the immovable property is located
NO EXTRACTS - entire act of mortgage or certified copy recorded in another parish
FIRST TO FILE WINS
77
Duration of Inscription
10 years after date of ACT of mortgage
NOT date of filing
EXCEPTION
78
Exception for 10 Year Rule
if mortgage describes 9+ year maturity date
= effective for 6 years after the maturity date
79
Notice of Reinscription
= to maintain effective recording, MUST BE FIELD BEFORE LAPSE
extends mortgage effectiveness for 10 years
80
Notice of Reinscription Requirements
1. name of mortgagor
2. recordation number or other info about OG filed mortgage
AND
3. declares mortgage reinscribed
81
Transfer of the Obligation
transfers of secured note automatically transfers mortgage
82
Transfer of the Mortgage Property
possessor of property subject to recorded mortgage = "third possessor"
83
Private Works Act
people who supply labor and materials to improve/ contract immovables get a **privilege on that immovable** to secure unpaid claims for materials and labor
84
Private Works Act Gives Claimants 2 Things:
1. claim against the OWNER
2. a PRIVILEGE on the immovable
85
Owner's Way to Avoid a PWA Claim
1. notice of K
AND
2. surety bond
if owner does both, then he avoids personal claims against him by **non-privity** claimants AND **privileges over his property** of PWA
86
Notice of K Requirements for PWA
1. **SIGNED by owner and gen contractor** AND **includes their NAMES and MAILING ADDRESSES**
2. contain a **COMPLETE PROPERTY DESCRIPTION of the immovable where work is to be performed** AND **name of constriction project** (same standard as mortgage)
3. **describe the WORK** that will be done
4. **describe the K PRICE** or if not set, the calculation method
5. **file in MORTGAGE RECORDS** _before_ work begins
87
Work Begins When:
(a) **placing of materials with at least $100 on the immovable** subject to construction
OR
(b) by **CONDUCT of other work on the immovable** the effect of which is **VISIBLE from a simple inspection** AND **reasonably indicates that work has begun**
[NOT DIRT WORK- they are still protected by PWA, just don't have to START the work]
88
Surety Bond Requirements for PWA
in the amount equal to the cost of the construction project
*must get a certificate and attach to the notice of K and file together BEFORE work beings*
89
Possible PWA Claimants
- owner
- general contractor
- subcontractors
- sellers of movables (materialmen)
- lessors of movables (to clear land/ dirt)
- laborers
90
Creating PWA Claims and Privileges
1. Arising (claim + privilege)
2. Preserving
91
PWA: Arising - Claim
as soon as claimant is owed money and it is not paid, claim arises under PWA
92
PWA: Arising - Privilege
exists as soon as claimant is owed money
EXCEPTIONS
93
PWA: Arising - Privilege Exception for GC's
NO PRIVILIGE if:
1. project is >$100K
AND
2. no notice of K is filed (or improper/ untimely)
94
PWA: Arising - Privilege Exception for Lessors of Movables
must deliver notice to GC and if notice of K is filed, then notice to owner
notice of the fact that the lessor leased/ intends to lease immovables to either GC or contractor for use of the work
95
PWA: Arising - Privilege Exception for Lessors of Movables
NOTICE Time Limit
no time limit for notice
BUT if file >30 days from when work begins, then privilege only includes RENTS that come due AFTER notice is given
96
PWA: Arising - Privilege Exception for Sellers of Movables
sellers of movables who have sold to a subcontractor AND where notice of K has been filed
must deliver notice of nonpayment of price to the owner and to GC
97
PWA: Arising - Privilege Exception for Sellers of Movables
NOTICE time limit
no later than **75 days** after last day in the month in which movables that were sold were delivered to the job site
98
PWA: Preserving - Requirements for Statement of Claim/ Privilege
1. **signed by claimant**
2. reasonably **identify improved immovable**
3. describe the **amount being claimed and ID person who failed to pay**
4. **describe work done with specificity**
+ file in parish where immovable prop subject to construction is located
99
If you are a claimant (1) without privity AND (2) notice of K was timely filed:
claimant must take copy of claim or privilege to be filed and give to owner at address provided in notice of K in addition to filing in mortgage records
100
PWA: Preserving - Filing in Time
60 days after the EARLIER OF:
1. filing of notice of termination
OR
2. date of substantial completion or abandonment
EXCEPTIONS
101
PWA: Preserving - Filing in Time EXCEPTIONS
- 30 days after notice of termination if notice of K timely filed and claimant does not have privity with owner (if no termination, 6 months after substantial completion/ abandonment)
- 60 days after notice of termination if GC (if no termination, 7 months after substantial completion/ abandonment)
102
Substantial Completion
either
1. last work is performed or materials delivered to construction site
OR
2. owner accepts the improvements or possesses/occupies property even if minor/inconsequential things that remain to be done
103
Abandonment
1. owner fires GC
OR
2. owner subjectively and in good faith manifests abandonment or discontinuance of the construction project
104
PWA Privilege Effective Against 3P:
the earlier of
1. when notice of K properly and timely filed
OR
2. when work begins
EXCEPTION: no work affadavits
105
No Work Affidavits
creates an IRREBUTABLE PRESUMPTION that work has not begun as of a particular date and time as indicated in the affidavit
106
No Work Affidavit Requirements
1. signed by an engineer/ surveyor/ architect
2. declare that work has not begun as of a certain date and time
3. contain complete property description
4. filed in the mortgage records no later than 4 business days before or 4 business days after the filing of a mortgage or privilege
AND
5. be based on an inspection that occurred no later than 4 business days before or 4 business days after filing of a mortgage or privilege
107
Ranking Line-Up
*by category, not time*
1. government liens (ie unpaid prop taxes)
2. any privilege held by LABORERS
3. mortgagees/ holder of lessors privileges where they became effective to 3P before PWA privileges became effective
4. privilege of subcontractors/ sellers of movables/ lessors of movables (share pro rata)
5. Privileges of GC/ architects/ surveyors/ engineers hired directly by owner
6. mortgages and vendors privileges that became effective AFTER PWA privilege became effective
108
How to Enforce a PWA Privilege
file lawsuit against owner under ordinary proceedings and enforce privileges as well
109
Prescription of PWA Privilege
1 year from filing of statement of claim and privilege
110
Maintenance of PWA Privilege
claimant must file a notice of LIS PENDENS into mortgage records within 1 year of filing of statement of claim and privilege
= to maintain PWA prove after filing suit
111
Maintenance of PWA Privilege
claimant must file a notice of LIS PENDENS into mortgage records within 1 year of
112
A mortgage is a ________. It must be ___________ and must _________________, the _______________, and must be signed by the ____________.
A mortgage is a **CONTRACT**. It must be **in WRITING** and must **state PRECISELY the NATURE and SITUATION of the immovable**, the **AMOUNT or the MAXIMUM amount of the obligation that the mortgage secures**, and must be signed by the **MORTGAGOR**.
113
The __________ is the party in whose favor the mortgage is granted, and the ____________ is the party granting the mortgage.
The **MORTGAGEE** is the party in whose favor the mortgage is granted, and the **MORTGAGOR** is the party granting the mortgage.
114
A conventional mortgage may be established to secure performance of ________________.
A conventional mortgage may be established to secure performance of **any lawful obligation.**
115
An obligation to pay rent under a lease is permissible. The prescriptive period for the payment of rent is __________ from when the rent is due and exigible.
An obligation to pay rent under a lease is permissible. The prescriptive period for the payment of rent is **three years** from when the rent is due and exigible.
116
When the rent is due on the first of each month of the term, prescription runs __________ for each rental payment on the first of the month when it becomes due and is not otherwise paid.
When the rent is due on the first of each month of the term, prescription runs **separately** for each rental payment on the first of the month when it becomes due and is not otherwise paid.
117
The transfer of an obligation secured by a mortgage . . .
includes the transfer of the mortgage itself.
118
When transfer of an obligation securing a mortgage occurs, the transferor warrants . . .
the existence,
validity and
enforceability
of the mortgage *only* to the extent that he or she warrants the existence, validity, or enforceability of the _principal obligation_ that it secures.
119
An assignment is . . .
the transfer of rights from one party to another AND
all incorporeal rights (such as the right of a lessor under a lease or of specific rights thereunder) are assignable.
120
In general, documents relative to the creation, modification, or termination of rights in an immovable (including security rights) only impact third persons if . . .
they are filed for registry in the public records of the parish where the relevant immovable is located.
121
A transferee of an obligation secured by a mortgage is not bound by any unrecorded act releasing, amending, or otherwise modifying the mortgage if . . .
he is a third person with respect to that unrecorded act.
122
A partial release of a mortgage over one of the lots constitutes . . .
an act which modifies a security right in immovable property,
THUS it must be recorded in the mortgage records in order for third persons to be bound by it.
123
Privileges under the Private Works Act (“PWA”) encumber . . .
immovables on which construction work is performed for amounts due.
124
In order for a PWA privilege to have effect, . . .
it must both arise and be preserved by the claimant.
125
The general rule is that PWA privileges arise when the claimant . . .
is due money and not paid.
EXCEPTION FOR GC!
126
General Contractor
one who contracts with the owner of immovable property to perform all or substantially all of a work on the property
127
In order for a general contractor’s privilege to arise, it must file a ________________ into the mortgage records of the parish where the to-be-improved immovable is located prior to the time work begins on it, but only if the project cost will exceed ___________.
In order for a general contractor’s privilege to arise, it must file a **notice of contract** into the mortgage records of the parish where the to-be-improved immovable is located prior to the time work begins on it, but only if the project cost will exceed **$100,000.**
128
Notice of Contract
an abbreviated version of the construction contract between the owner and the general contractor
129
Subcontractors are given claims and privileges under the PWA, provided that . . .
such claims and privileges properly arise and are preserved.
130
Subcontractor
those that are engaged directly by a contractor to perform all or a part of a work contracted for by the contractor
131
Once preservation has occurred, the claimant must commence an action against the owner to enforce the PWA claim or privilege within ________ from the date of filing the statement.
Once preservation has occurred, the claimant must commence an action against the owner to enforce the PWA claim or privilege within **one year** from the date of filing the statement.
132
PWA privileges generally rank from the date that “work” begins, which is when materials worth at least $100 are delivered to the worksite or when “other work” is conducted on the site that is visible from a simple inspection and reasonably indicates that work has begun.
PWA privileges generally rank from the date that **“work” begins**, which is when materials worth at least $100 are delivered to the worksite or when “other work” is conducted on the site that is **visible from a simple inspection and reasonably indicates that work has begun**
133
Suretyship Requirements
express,
in writing, and
signed by the party acting as surety
134
a predial servitude is inseparable from the dominant estate, and, as such, the dominant estate _________ be encumbered separately from the servitude
a predial servitude is inseparable from the dominant estate, and, as such, the dominant estate **CANNOT** be encumbered separately from the servitude
(??? CHECK- typo in question? 3.2 Feb 2019)
135
A conventional mortgage may be established to secure performance of any lawful obligation, including . . .
debts that were incurred in the past and are still outstanding, as well as those that are in the present or in the future.
136
The only caveat to the rule that a conventional mortgage can secure performance on any lawful obligation is that the amount the mortgage secured at any one time is limited by . . .
the amount or maximum amount so stipulated in the mortgage itself.
137
A vendor’s privilege on an immovable is . . .
a security right that is granted by operation of law whenever a person sells immovable property, but the purchase price has not yet been paid.
138
A vendor's privilege . . .
gives the privilege holder the right to have the encumbered property seized and sold under legal process in satisfaction of the debt owed.
139
the general rule is that _______ are always superior to ________.
the general rule is that **privileges** are always superior to **mortgages**
140
with regard to a vendor’s privilege on an immovable, the privilege will only be superior to a prior recorded mortgage of the vendee/buyer if . . .
the privilege becomes effective as to third persons within seven days (or 15) of the date that the act creating the vendor’s privilege was passed
If the act is not recorded timely (under either of these scenarios), then the privilege will rank as to any prior recorded mortgages from the date of filing the act of credit sale.
141
The period of liberative prescription for promissory notes, whether negotiable or not, is _____________
The period of liberative prescription for promissory notes, whether negotiable or not, is **five years**
142
The triggering of the running of prescription is from the day that the note (or any installment thereunder) becomes . . .
due and exigible.
143
If an optional acceleration clause is contained in the promissory note, then the creditor may, at its choosing and upon a default under any installment, . . .
declare all future installments due and payable (and thus collectable) at that time.
144
A mortgage is only extinguished when . . .
all of the secured obligations have prescribed
145
A mortgage may secure obligations that may arise in the future and the mortgage has effect between the parties from the time the mortgage is established, notwithstanding the date such obligations arise.
146
The filing of an affidavit containing certain information creates an irrebuttable presumption that no work has begun as of a stipulated date and time and that such a state of affairs remains true until a subsequent mortgage is filed, provided however that the inspection occurs, and the affidavit is filed, within four business days before or within four business days after the filing of the competing mortgage
147
mortgagor is entitled to conclusively rely upon the facts asserted in a
timely filed affidavit from a qualified inspector that work has not begun (it is worth nothing that a person who gives a false affidavit shall be responsible for any loss or damage suffered by any person whose rights are adversely affected—so the inspector may have liability).
148
demand note
technically means that the payor must pay whenever the payee makes demand, but that does not mean prescription only commences upon demand.
149
If a promissory note contains an acceleration clause, it . . .
makes the full amount of the loan to become due (and collectable) upon mortgagee's failing to pay any single amount as it became due.
This would also have an impact on the running of prescription, as it would run on the entire amount at that moment.
150
acceleration only occurs if . . .
mortgagor exercises the right to accelerate
151
Tolling Agreements
contracts by which parties involved in a dispute consent to extend the relevant liberative prescriptive period
152
Tolling Agreement Requirements
- express
- in writing
153
Tolling Agreement Restrictions
- may only be made after liberative prescription has commenced to run
BUT
- before it accrues AND,
- although successive agreements are allowed, any single agreement may not extend prescription for more than one year
154
mortgaging of future property is permissible, the property must still be . . .
described with the same specificity as though the mortgage was being granted over property already owned by the mortgagor.
155
A mortgage may secure obligations that arise in the future, and, when it does, the mortgage . . .
remains valid against the mortgagor even if the borrower repays all outstanding loans.
This remains the case until a proper demand for termination is given by the mortgagor to the mortgagee
156
When a note is payable on demand, prescription runs from the date of demand. If no demand for payment is ever made, an action to enforce the note is barred if . . .
neither principal nor interest on the note has been paid for a continuous period of five years.
157
future advance mortgage
securing obligations that may arise in the future
the mortgage has effects between the parties from the time the mortgage is established
notwithstanding the date such obligations arise
158
Methods of Extinguishing Mortgage
A. The extinction or destruction of the thing mortgaged.
B. Confusion as a result of the obligee’s acquiring ownership of the thing mortgaged.
C. Prescription of all the obligations that the mortgage secures.
D. Consent of the mortgagee.
