Code III - Security Rights Flashcards

Question

Property Susceptible to Mortgage

Answer 1

absolute ownership and lesser rights (ususfruct, servitudes of right of use, lessee's right of quiet use and enjoyment) if movables become component parts, mortgage automatically extends

Answer 2

1. In Writing 2. Signed by MORTGAGOR 3. Value and describe secured obligation 4. Describe Immovable Property

Answer 3

Authentic act recommended BUT NOT required if authentic act can be enforced quicker through "executory" process if not authentic must go through "ordinary" process Paraphs - NO LONGER REQUIRED

Answer 4

to be effective as to third parties must be filed for record in parish in which immovable property is located

Answer 5

whoever properly filed first takes first precedence to the value of the property Buyers of the property = have absolute and exclusive ownership if mortgagee fails to file before buyer files an act of sale

Answer 6

acts of mortgage must be filed in the MORTGAGE RECORDS (ENTIRE MORTGAGE MUST BE FILED) Acts of sale are filed in conveyance records

Answer 7

any mortgage is effective for at least 10 years after the date on ACT OF MORTGAGE (NOT FILING) Longer if: 1. mortgage describes the maturity date 2. The maturity date is nine years or longer 6 years after the maturity date

Answer 8

if amended and refiled effective period of mortgage is recalculated according to new terms

Answer 9

must sign and file a notice of reinscription BEFORE LAPSE 1. states the name of the mortgagor 2. states the recordation number or other information about the original filed mortgage 3. declares the mortgage resinscribed EXTENDS for another 10 years

Answer 10

must be revived in a separate proceeding

Answer 11

original creditor-mortgagee transfers to 3p the right to enforce an obligation new creditor automatically acquires all original creditor's rights under the mortgage

Answer 12

buyer who files act of sale in conveyance records AFTER mortgagee properly filed takes the property SUBJECT to the mortgage Called a third possessor

Answer 13

1. Extinction or Destruction of Mortgaged Prop 2. Extinction of Principal Obligation 3. Confusion 4. Termination (written notice from mortgagor when all outstanding debt is paid)

Answer 14

secures fluctuating future advances must state the max amount of secured debt that can be outstanding at any given time Priority is given the date which is filed remains effective against borrower even if paid all outstanding loans

Answer 15

owner of immovable gives creditor rights in one or more leases of that immovable and its rents to secure an obligation

Answer 16

1. in writing signed by pledgor 2. states amount secured or the maximum secured amount that can be outstanding at any time 3. precisely describes nature and situation of the immovable property NEED NOT describe specific leases must be filed in mortgage records in parish of immovable property to be effective against third parties

Answer 17

Arises by operation of law gives a creditor a right in identified property to serve as a source of value if the obligor fails to fulfill an obligation ALL DEFINED BY LAW NOT BY AGREEMENT

Answer 18

do not offer a quicker an more convenient method of seizing and selling property, its a RESERVATION of priority

Answer 19

General = all identified property Special = specified property

Answer 20

attach to ALL movable and immovable property of the person to whom the described goods or services have been supplied on credit general privileges rank below SPECIAL privileges or security interest but ABOVE a mortgage Examples: funeral charges up to $500 and winning litigants right to collect court-ordered costs from losing party

Answer 21

only affect movable property 1.Artisan's/Repairpersons Privilege 2. Lessor's privilege 3. Vendor's privilege

Answer 22

Civil Code: only the price of labor and only so long as the thing remains in the artisan's possession Revised Statutes: secures both labor and materials and remains for 120 days from last day on which materials and/or labor was supplied OR until person relinquishes possession of the item whichever is later 120 days increased to 1 year if repaired item is farm equipment Civil code privilege is TOP priority Statute priority over all security right other than prior perfected chapter 9 interests

Answer 23

landowners who lease their farmland and buildings to secure payment of rent and other obligations effects all lessee's movables on property persists for 15 days for property removed privilege extends to prop of sublessee but no 15 day right to pursuit Priority over vendor's privilege (except vendor's on farm equipment) and all general privileges except funeral charges

Answer 24

Immovable credit sale = must be recorded in mortgage records to preserve privilege Movables credit sale = persists only as long as stays in possession of buyer Priority in movable over all general privileges but is subordinate to lessor's privilege (except in farm implements) Properly recorded vendor's privilege in immovable property has priority over a filed mortgage only if the act of credit sale is properly recorded before the mortgage OR WITHIN 7 days of the date of the act of credit sale 15 days if recorded in different parish than where executed

Answer 25

protects contractors and suppliers for claims for unpaid wages and material costs

Answer 26

1. claim against the owner of the immovable property over which work was done 2. a privilege over the immovable over which work was done

Answer 27

can avoid by filing a notice of contract and obtaining surety bond

Answer 28

BEFORE WORK BEGINS filed in mortgage records where immovable is located Must be singed by owner and contractor and describe the immovable, work to be done, contract price, and when payment is due

Answer 29

Work begins when either 1. materials worth at least $100 are delivered to the site 2. other visible work is conducted on the site (except dirt work)

Answer 30

owner must obtain surety bond in an amount sufficient to cover potential claims attach evidence of bond to notice of contract

Answer 31

1. Must arise 2. Must be preserved

Answer 32

PWA claims and privilege arises as soon as a claimant is owed money

Answer 33

1. Claimant is general contractor and cost of construction is greater than $100,000, claimant MUST properly file notice of contract 2. Claimant is lessor of movables, lacks privity of contract with owner, the claimant MUST deliver notice to the contractor (and owner if notice of contract is filed) that they have leased or intend to lease to a contractor or subcontractor for use in work NOTE: if notice is given more than 30 days from when leased movable is delivered then claim/privilege ONLY inlcudes rents that come due after notice is given 3. Claimant is seller of movables (materialman) to a subcontractor and notice of contract has been filed, claimant must deliver notice of nonpayment of the price to the owner and contractor no later than 75 days from last day of the month on which the movables were delivered to the job site

Answer 34

claimant must file a statement of claim and/or privilege in proper time period 1. be signed by claimant 2. reasonably identify improved immovable 3. describe the amount being claimed 4. identify who failed to pay 5 Describe the work that was done

Answer 35

Statement of claim and/or privilege must be filed no later than 60 days from the earlier of: 1. filing of a notice of termination of the work 2. date of subtantial completion or abandonment of the work

Answer 36

1. 30 days after the notice of termination IF: 1. a notice of contract has been timely filed, AND 2. the claimant is not in privity of contract with the owner NO LATER THAN 6 MNTHS after the date of substantial completion or abandonment (delivered to owner in 30 days or 6 months if address is given in notice of contract 2. 60 days after notice of termination if claimant is general contractor. If a notice of termination has not been filed, no later than 7 months after the date of substantial completion or abandonment 3. 70 days after the earlier of the filing of a notice of termination or the date of substantial completion or abandonment if: 1. claimant is a seller or lessor of movables with privity of contract with the owner or any claimant does not have privity of contract with the owner 2. the work is residential 3. a notice of contract was not filed, and 4. the claimant gives notice of nonpayment to the owner before expiration of the general 60-day filing period and then waits at least 10 days before filing stmt of claim/privilege

Answer 37

substantially complete when 1: last work is performed on or materials are delivered to the contstruction site OR 2: owner accepts the improvement or possesses or occupies the immovable abandoned when: 1. owner terminates the work and notifies the person engaged no longer desire to continue OR 2: owner otherwise objectively and in good faith manifests the abandonment or discontinuance of the prroject

Answer 38

earlier of: 1. notice of contract is properly filed OR 2. when work begins

Answer 39

creates an irrebuttable presumption that work has not begun Requirements: 1. singed by an engineer, surveyor, or architect 2. declare work has not begun 3. contain complete property description 4. filed in mortgage records no later than 4 business days before or after the filing of a mortgage or privilege 5. based on an inspection that occured no later than four business days before or after the filing of a mortgage or privilege

Answer 40

1. Local Gov 2. Laborers 3. Mortgages and vendors' privileges that became effective BEFORE PWA privileges 4. Subcontractors, materialmen, and lessors 5. General contractor, architects, surveyors, or engineers hired by owner or professional consultant 6. Mortgages and vendors' privileges effective AFTER PWA privileges effective

Answer 41

file suit under ordinary process Prescription: 1 year from filing of statement of claim and/or privilege for PWA claims Maintenance: notice of lis pendens msut be filed into the mortgage records within one year of filing the satement of claim and/or privilege