Louisiana Civil Code

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TITLE X - ANNUITIES

 

CHAPTER 1 - ANNUITY CONTRACT

Art. 2778. A. An annuity contract is an agreement by which a party delivers a thing to another who binds himself to make periodic payments to a designated recipient. The recipient's right to these payments is called an annuity.

B. A contract transferring ownership of a thing other than money for a certain or determinable price payable over a term is not an annuity contract. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2779. In all matters for which no special provision is made in this Title, an onerous annuity contract is governed by the Titles of Obligations in General and Conventional Obligations or Contracts, and when the contract provides for delivery of a thing other than money, it is governed by the Title of Sales. A gratuitous annuity contract is governed by the Title of Donations. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2780. The recipient of payments under an annuity contract may be a natural person or a juridical person. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2781. The payments under an annuity contract may be for the lifetime of a designated natural person, or, alternatively, for a period of time. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2782. In the absence of a designated term, an annuity established in favor of a natural person terminates upon the death of that person, but one in favor of a juridical person is without effect. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2783. In the absence of a contrary provision of law or juridical act, the rights and obligations of the parties under an annuity contract are assignable and heritable. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2784. An annuity may be established in favor of successive recipients. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2785. An annuity contract may be established in favor of several natural persons, whether in divided shares or in indivision. When an annuity contract is established for the lifetimes of several recipients of payments in indivision, the termination of the interest of a recipient inures to the benefit of those remaining unless the annuity contract expressly provides otherwise. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2786. When an annuity is established in favor of a natural person, that person must exist or be in utero at the time of the formation of the annuity contract.

When an annuity is established in favor of a juridical person, that person must likewise exist at the time of the formation of the annuity contract. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

 

CHAPTER 2 - ANNUITY CHARGE

Art. 2787. An annuity contract transferring an immovable may provide for the establishment of a charge on the immovable for the periodic payments due under the contract. In such a case, the recipient in whose favor the annuity was established acquires a real right for periodic payments. The establishment of the annuity charge must be express and in writing. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2788. An annuity charge on an immovable is without effect as to third persons unless the annuity contract establishing it is recorded in the conveyance records of the parish in which the immovable is located. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2789. In all matters for which no special provision is made in this Chapter, the annuity charge is governed by the provisions of Chapter 1 of this Title. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2790. The annuity charge may not exceed thirty years, except that it may continue for the lifetime of a recipient who is a natural person. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Art. 2791. A. Upon failure of payment of amounts due under a contract establishing an annuity charge, the recipient may obtain judgment for the amounts due and may enforce the judgment by execution upon the immovable subject to the annuity charge in accordance with law.

B. The adjudication extinguishes the annuity charge for all amounts for which judgment was rendered as well as all charges and encumbrances on the immovable inferior to the annuity charge but does not extinguish the annuity charge for amounts thereafter becoming due under the contract. [Acts 2012, No. 258, §1, eff. Jan. 1, 2013]

Arts. 2792-2800 [Repealed. Acts 2012, No. 258, §1, eff. Jan. 1, 2013]