| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
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| LAWDOG™ Louisiana Repossession |
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| Liens Filed With Office of Motor Vehicles The
proper place to file in order to perfect a security interest when the collateral is a
titled motor vehicle subject to Revised Statutes 32:701, et.seq., not held as inventory
for sale or lease, is with the Department of Public Safety and Corrections, office of
motor vehicles. In all other cases, with the clerk of court of any parish, or, in the case
of Orleans Parish, with the recorder of mortgages. Louisiana Revised Statutes 10:9-401 |
| Validation of Receipt Presentation
for filing of a financing statement or other statement, including a legible telefaxed copy
of the financing statement, and tender of the filing fee by any method of payment
acceptable to the filing officer, or acceptance of the financing statement or other
statement by the filing officer constitutes filing under this Chapter. However, a
financing statement affecting a titled motor vehicle subject to Revised Statutes 32:701,
et.seq., is filed when received and such receipt is validated by the secretary of the
Department of Public Safety and Corrections, Office of Motor Vehicles. |
| When a financing statement affecting a titled motor vehicle is filed with
the Department of Public Safety and Corrections, office of motor vehicles, the secretary
of the department shall note the lien of the security interest and the date on which the
financing statement was filed on the certificate of title of such vehicle and otherwise
comply with the applicable provisions of Louisiana Revised Statutes 32:701 et.seq. |
| A financing statement affecting a titled motor vehicle, filed with the
Department of Public Safety and Corrections, office of motor vehicles, remains effective
until terminated upon proof of satisfaction as provided in Revised Statutes 32:708(B). |
| Receipt Validated Within 15 Days
The Vehicle Certificate of Title Law is to be construed to have effect that such a chattel
mortgage be complete and effective as to all persons from time of execution by the parties
if the mortgage is received and such receipt is validated by the office of the
commissioner within fifteen days after the date of execution. See Revised Statutes of
Louisiana 32:706 |
| Authentic Act The time of
execution will be date of execution before a notary public or other duly authorized
officer. If accomplished by duly acknowledged private act, date of signing by parties is
time of execution. If chattel mortgage is not received and such receipt is not validated
by the office of the commissioner within fifteen days after date of execution, it is
complete and effective as to all persons from date of notation of chattel mortgage on face
of certificate of title for vehicle by commissioner. See Revised Statutes of Louisiana
32:706 |
| Louisiana Department of Public Safety,
Louisiana Office of Motor Vehicles
has a web site with excellent information. See, for example, "Basic
Requirements For Obtaining A Certificate Of Title" or "Recording
Liens On Vehicles Under The Uniform Commercial Code Ucc-1 Financing Statement Revised
Statutes 32:710" |
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| Louisiana
Administrative Code Subject Index |
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| No Self-Help Repossession Without Order
Louisiana Revised Statutes 6:965 through 6:967 provides that self help repossession
is illegal in Louisiana, except following court order as provided by Revised Statutes
6:966. The lienholder must submit a certified copy of the judgment permitting lienholder
to take possession of vehicle, and an affidavit of possession verifying that
lienholder did, in fact, take possession of vehicle following the terms of the judgment. |
| Possession After Default
After default, a secured party may sell, in the manner and with the effect as provided by
Revised Statutes 10:9-504 and subject to the other provisions hereof, goods that are in
his possession, or that have been voluntarily delivered or surrendered to him for such
purposes by the debtor, either before or after default, and instruments, documents,
accounts, chattel paper, or general intangibles. See Louisiana Revised Statutes 10:9-503 |
| Right To Redeem At any time
before secured party has disposed of collateral or entered into contract for its
disposition under Revised Statutes 10:9-504 or pursuant to judicial process or before the
parties have agreed to the transfer of such collateral in satisfaction of the secured
obligations, wholly or partially, as provided or contemplated by R.S. 10:9-505, the debtor
or any other secured party may, unless otherwise agreed in writing after default, redeem
the collateral by tendering fulfillment of all obligations secured by collateral, expenses
reasonably incurred by secured party in retaking, holding and preparing collateral for
disposition, in arranging for sale, and to extent provided in agreement and not prohibited
by law, reasonable attorneys' fees and legal expenses. See Revised Statutes of Louisiana
10:9-506 |
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| Compulsory Sale In Certain Cases
A secured party entitled to sell the collateral under the provisions of
Revised Statutes of Louisiana 10:9-503 may, after default, propose to retain the
collateral in satisfaction of the obligation. Written notice of such proposal shall be
sent to the debtor if he has not signed after default a statement renouncing or modifying
rights In case of consumer goods no other notice need be given. |
| Subordinate Liens In cases
other than consumer goods, notice shall be given to any other secured party who has a
security interest in the same collateral and who has duly filed a financing statement
indexed in the name and social security, or taxpayer identification number, as applicable,
of the debtor or from whom the secured party has received (before sending his notice to
the debtor, or before the debtor's renunciation of his rights) written notice of a claim
of an interest in the collateral. If the secured party receives objection in writing from
a person entitle to receive notification within twenty-one days after the notice was sent,
the secured party may not retain the collateral and shall proceed in the manner otherwise
provided by this section. In the absence of such written objection, the secured party
shall be deemed to have acquired the collateral in satisfaction of the debtor's
obligation. The provisions of this Subsection do not apply
when the debtor has paid sixty percent of the cash price in the case of a purchase money
security interest in consumer goods or sixty percent of the loan in the case of another
security interest in consumer goods, and has not signed after a default a statement
renouncing or modifying his rights under this part. |
| Consumer Deficiency Notice
The abandonment or surrender by debtor to secured party of consumer goods subject to a
security agreement, that is made after or in contemplation of debtor's default is deemed
to be a surrender for purposes of sale in accordance with the provisions of this Part 5.
The secured party is presumed to have accepted the goods without the right to pursue a
deficiency judgment unless he sends written notice or otherwise notifies the debtor within
twenty days after he takes actual possession, to the effect that he is accepting
possession of the goods with full reservation of deficiency rights. |
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| Non-Consumer Presumption
The abandonment or surrender to secured party of goods, other than consumer goods, subject
to a security interest, that is made after or in contemplation of default, is deemed to be
a surrender for purposes of sale pursuant to provisions of this Part, with full
reservation of deficiency rights, in the absence of written agreement to the contrary made
substantially contemporaneously with or after such surrender. |
| Agreements and Security The
debtor may also agree in writing after default to permit the secured party to accept or
retain ownership of the collateral in lieu of payment and in satisfaction of an agreed
portion of the secured indebtedness, and the debtor shall thereafter remain liable for any
deficiency between the amount of the secured indebtedness and such agreed sum unless
otherwise agreed, the secured party shall thereafter retain any security interests
affecting any other collateral securing such remaining indebtedness. A secured party
accepting ownership of collateral pursuant to this Subsection accepts the collateral
subject to any other perfected security interest of any other secured party. |
| Retention of Collateral As Satisfaction In cases other than consumer
goods, a secured party in possession may, after default, propose to retain collateral in
satisfaction of the obligation. Written notice of such proposal must be sent to debtor, if
debtor has not signed after default a statement renouncing or modifying rights. In
non-consumer cases notice must be sent to any other secured party from whom secured party
has received before notice to or renunciation of rights by debtor, written notice of a
claim of interest in collateral. If secured party receives objection in writing from a
person entitled to receive notice within 21 days after notice was sent, the secured party
must dispose of collateral under Section 9-504. If no such written objection is received,
secured party may retain collateral in satisfaction of debtor's obligation. |
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| No Self-Help Repossession Without Order
Louisiana Revised Statutes 6:965 through 6:967 provides that self help repossession
is illegal in Louisiana, except following court order as provided by Revised Statutes
6:966. The lienholder must submit a certified copy of the judgment permitting lienholder
to take possession of vehicle, and an affidavit of possession verifying that
lienholder did, in fact, take possession of vehicle following the terms of the judgment. |
Revised Statutes 6:966 provides that Articles 965 and 966 are not
applicable to Orleans Parish. Therefore, any judgment from Orleans Parish issued pursuant
to this statute will be invalid. Vehicles repossessed from Orleans Parish must comply with
other provisions as outlined in this policy.
*3. If lienholder is applying for title in lienholder's name, then a notarized affidavit
stating vehicle is for resale purposes only must be submitted. If lienholder decides to
use the vehicle, then they must apply for a title and pay all applicable fees and taxes.
4. Notarized bill of sale from lienholder to purchaser.
5. Current registration certificate or copy of same.
NOTE: Tax will be due by the lienholder(s) when new vehicles are sold by them with a
certificate of origin since they are not franchised dealers. See 34.00
Sales Of Repossessions from Office of Motor Vehicles Policies. |
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