Louisiana Revised Statutes 3:3651 – Legislative findings and intent
Terms Used In Louisiana Revised Statutes 3:3651
- Security interest: means an interest in or encumbrance upon farm products that secures payment or performance of an obligation. See Louisiana Revised Statutes 3:3652
The legislature hereby finds and declares that:
(1) Certain state laws permit a secured lender to enforce liens against a purchaser of farm products even if the purchaser does not know that the sale of the products violates the lender’s security interest in the products, lacks any practical method for discovering the existence of the security interest, and has no reasonable means to ensure that the seller uses the sales proceeds to repay the lender.
(2) These laws subject the purchaser of farm products to double payment for the products, once at the time of purchase, and again when the seller fails to repay the lender.
(3) The exposure of purchasers of farm products to double payment inhibits free competition in the market for farm products.
(4) This exposure constitutes a burden on and an obstruction to commerce in Louisiana farm products.
(5) The purpose of this legislation is to remove the burdens on and obstructions to commerce in Louisiana farm products.
Acts 1987, No. 451, §1, eff. Oct. 1, 1987.