mortgages

Question 1

what does a judicial mortgage secure

Answer 1

a money judgment

Question 2

how is a judicial mortgage created

Answer 2

filing judgments in the mortgage records

Question 3

what type of mortgage is a judicial mortgage

Answer 3

general

1. attaches to all property within the parish
2. extends to future property and becomes effective upon acquisition

Question 4

when does a judicial mortgage become effective

Answer 4

becomes effective upon recordation

Question 5

what’s the duration for a judicial mortgage

Answer 5

10 years & can be reinscribed

Question 6

how is a judicial mortgage extinguished

Answer 6

if the judgment prescribes (judgment prescribes in 10 years) (judgment can be reinscribed, however)

Question 7

what’s required for notice of reinscription

Answer 7

1. name of the mortgagor
2. states the recordation number or other information about the original filed mortgage
3. declares the mortgage reinscribed

Question 8

what’s the effect of reinscription

Answer 8

10 more years for effectiveness from the date of filing the notice

Question 9

what is a conventional mortgage

Answer 9

a mortgage created by contract; it is a contingent right in immovable property

Question 10

who are the parties to a conventional mortgage

Answer 10

1. mortgagee –the creditor who has the security right over the property
2. mortgagor –person whose property rights are affected by the mortgage

Question 11

what are the elements for a conventional mortgage

Answer 11

1. writing (AUPS suffices)
2. describe the immovable property
3. value and describe the secured obligation
4. signed by the mortgagor

Question 12

what is the consequence of executing an AUPS vs. an AA for a conventional mortgage

Answer 12

if you have an AA, you are entitled to executory process; if you only have an AUPS, you are only entitled to ordinary process

Question 13

why doesn’t the mortgagee have to sign the act of mortgage

Answer 13

they are presumed to have accepted

Question 14

what is required when describing the secured obligation within a conventional mortgage

Answer 14

either state the amount of the secured obligation or up to the maximum amount (MIM)

Question 15

what is required to describe the immovable property within a conventional mortgage

Answer 15

the nature and situation of the immovable –need a complex legal description with quarters, sections, and ranges

Question 16

what is a multiple indebtedness mortgage

Answer 16

a conventional mortgage that secures a fluctuating future advance

Question 17

how is a conventional mortgage effective as to third parties?

Answer 17

upon filing in the mortgage records in the parish where the immovable is located; if it’s filed in the wrong location, ineffective

Question 18

when will a conventional mortgage lapse

Answer 18

GR: 10 years after the act of mortgage is executed (default applies when no date is specified in the act

exception: act of mortgage describes the maturity date as longer than 9 years from the date of the act (adds 6 years to maturity date)

Question 19

how are conventional mortgages typically ranked

Answer 19

first in time, first in line (unless your mortgage lapses)

Question 20

how is a conventional mortgage extinguished

Answer 20

1. principal obligation paid
2. property destroyed
3. MIM –> terminated by written notice from mortgagor to mortgagee when all outstanding debt is paid and neither is bound to allow anymore obligations

Question 21

when does a promissory note prescribe

Answer 21

actions on promissory notes are subject to a prescription period of 5 years

prescriptive period commences from the day the payment is due and exigible –each monthly installment has its own prescriptive period for conventional mortgages