Louisiana Civil Code

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CHAPTER 2 - THE PLEDGE OF THE LESSOR’S RIGHTS IN THE LEASE OF AN IMMOVABLE AND ITS RENTS

Art. 3168. A contract establishing a pledge of the lessor’s rights in the lease of an immovable and its rents must state precisely the nature and situation of the immovable and must state the amount of the secured obligation or the maximum amount of secured obligations that may be outstanding from time to time. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3169. The pledge of the lessor’s rights in the lease of an immovable and its rents is without effect as to third persons unless the contract establishing the pledge is recorded in the manner prescribed by law.

Nevertheless, the pledge is effective as to the lessee from the time that he is given written notice of the pledge, regardless of whether the contract establishing the pledge has been recorded. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3170. A pledge of the lessor’s rights in the lease of an immovable and its rents may be established in an act of mortgage of the immovable. In that event, the pledge is given the effect of recordation for so long as the mortgage is given that effect and is extinguished when the mortgage is extinguished. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3171. A pledge may be established over all or part of the leases of an immovable, including those not yet in existence, without the necessity of specific description of the leases in the contract establishing the pledge. If the pledge is established over leases not yet in existence, the pledge encumbers future leases as they come into existence. The pledge has effect as to third persons, even with respect to leases not in existence at the time of formation of the contract establishing the pledge, from the time that the contract establishing the pledge is recorded in the manner prescribed by law. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3172. By express provision in a contract establishing a pledge, the owner of land or holder of a mineral servitude may pledge bonuses, delay rentals, royalties, and shut-in payments arising from mineral leases, as well as other payments that are classified as rent under the Mineral Code. Other kinds of payments owing under a contract relating to minerals are not susceptible of pledge under this Title. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3173. Except as provided in this Article, a pledgee is not bound to account to another pledgee for rent collected.

A pledgee shall account to the holder of a superior pledge for rent the pledgee collects more than one month before it is due and for rent he collects with actual knowledge that the payment of rent to him violated written directions given to the lessee to pay rent to the holder of the superior pledge.

After all secured obligations owed to a pledgee have been extinguished, he shall deliver any remaining rent collected to another pledgee who has made written demand upon him for the rent before he delivers it to the pledgor. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3174. A pledge of the lessor’s rights in the lease of an immovable and its rents does not entitle the pledgee to cause the rights of the lessor to be sold by judicial process. Any clause to the contrary is absolutely null. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Art. 3175. In all matters for which no special provision is made in this Chapter, the pledge of the lessor’s rights in the lease of an immovable and its rents is governed by the provisions of Chapter 1 of this Title. [Acts 2014, No. 281, §1, eff. Jan. 1, 2015]

Arts. 3176-3181. [Repealed. Acts 2014, No. 281, §4, eff. Jan. 1, 2015]

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