Louisiana Civil Code

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TITLE XX - SECURITY

Art. 3133. Whoever is personally bound for an obligation is obligated to fulfill it out of all of his property, movable and immovable, present and future. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3134. In the absence of a preference authorized or established by legislation, an obligor’s property is available to all his creditors for the satisfaction of his obligations, and the proceeds of its sale are distributed ratably among them. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3135. A written contract may provide that the obligee’s recourse against the obligor is limited to particular property or to a specified class or kind of property. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3136. Security is an accessory right established by legislation or contract over property, or an obligation undertaken by a person other than the principal obligor, to secure performance of an obligation. It is accessory to the obligation it secures and is transferred with the obligation without a special provision to that effect. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3137. Security is personal or real.

It is personal when it consists of an obligation undertaken to secure performance of the obligation of another.

It is real when it consists of a right of preference established over property of the obligor or of a third person to secure performance of an obligation. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3138. Kinds of security include suretyship, privilege, mortgage, and pledge. A security interest established to secure performance of an obligation is also a kind of security. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3139. Security interest is defined by the Uniform Commercial Code, which specifies the kinds of property susceptible of encumbrance by a security interest and governs the manner of creation of security interests and the rights of the holders of security interests against obligors and third persons. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3140. Unless expressly permitted by law, a clause in a contract providing in advance that ownership of a thing given as security will transfer upon default in performance of the secured obligation is absolutely null.

A clause in a contract obligating the owner of a thing to give it to an obligee in payment of a debt upon a future default in performance of an obligation is absolutely null. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]