Louisiana Revised Statutes 13:4108 – Transactions which do not bar deficiency judgment
Terms Used In Louisiana Revised Statutes 13:4108
- Appraisal: A determination of property value.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
Notwithstanding any other law to the contrary, including but not limited to La. Rev. Stat. 13:4106 and 4107, none of the following actions by a mortgagee or other creditor shall prohibit the mortgagee or other creditor from obtaining a deficiency judgment against any debtor, guarantor, or surety, notwithstanding the fact that a sale of property or collateral may have occurred at a judicial sale without appraisal, at a public or private sale with or without appraisal, or at a judicial sale with a defective appraisal:
(1) A sale through the New York Stock Exchange, the American Stock Exchange, or the NASDAQ, of any pledged stock, bonds, or options registered or traded on such exchanges.
(2) A sale through the Chicago Commodity Exchange of any pledged options registered or traded on such exchange.
(3) A sale pursuant to an order of a United States Bankruptcy Court, or of a United States District Court sitting in bankruptcy.
(4) The mortgagee’s or other creditor’s exercise of its rights against property subject to a mortgage, pledge, privilege, security interest, or encumbrance in favor of such creditor, when the property or collateral is located outside the state of Louisiana, and the creditor has elected to proceed under the laws of the state, county, or territory where the property or collateral is then located to seize or sell such property or collateral.
(5) The collection or receipt of:
(a) Any proceeds of any pledged negotiable or nonnegotiable note;
(b) Any funds through the offset of any pledged deposit of cash, whether in the form of a demand deposit account with any institution insured by any agency of the federal government, certificate of deposit, or otherwise;
(c) Any proceeds of any pledge or assignment of accounts receivable; or
(d) Any proceeds of any pledge or assignment of the right to receive income under any lease or rent of movable property or immovable property.
(6) Collection or receipt of insurance proceeds under a simple or standard loss-payee clause.
(7) Collection or receipt of the return of any unearned premiums of any insurance policy.
Acts 1986, No. 489, §2; Acts 1989, No. 137, §8, eff. Sept. 1, 1989.