Louisiana Revised Statutes 9:3259.3 – Privilege for unpaid lease payments; abandoned manufactured homes and abandoned movable property; enforcement of privilege by owner of immovable property; definitions
Terms Used In Louisiana Revised Statutes 9:3259.3
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- 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
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
A. As used in this Section, the following terms shall have the following meanings:
(1) “Abandoned manufactured home” means a manufactured home that has a current fair market value not exceeding five thousand dollars that is not encumbered by a mortgage, lien, privilege, or security interest, that is placed upon immovable property of another subject to a lease agreement, when the lessee has notified the owner of the immovable property that the lessee no longer intends to remain in the manufactured home and intends to abandon the remaining movable property, or when a reasonable person would conclude from all appearances that the lessee no longer intends to occupy the manufactured home or claim ownership to any of the remaining movable property.
(2) “Abandoned movable property” means contents, personal items, or other movable property as defined by Civil Code Article 475 of the lessee left in the abandoned manufactured home.
(3) “Manufactured home” means a mobile home or residential mobile home as defined by La. Rev. Stat. 9:1149.2.
B.(1) The owner of immovable property to secure the payment of rent and other obligations arising under the lease shall have a privilege on any abandoned manufactured home that is not encumbered by a mortgage, lien, privilege, or security interest, and on any abandoned movable property that is placed upon the immovable property pursuant to a lease agreement.
(2) Notwithstanding any other provision to the contrary, the provisions of this Section shall not apply to any manufactured home or abandoned manufactured home that is encumbered by a mortgage, lien, privilege, or security interest.
C. In the event of default by the lessee and abandonment of the manufactured home and after compliance with the provisions of La. Rev. Stat. 9:3259.1, if applicable, the owner of the immovable property may enforce judicially all of his rights under the lease agreement, and to enforce his privilege for the debt due him, as follows:
(1) The owner of the immovable property shall be authorized to remove any lock on the abandoned manufactured home located on the immovable property in order to compile a brief and general description of the abandoned manufactured home and abandoned movable property, including the serial number and vehicle identification number of the manufactured home, if available, upon which a privilege is claimed and shall be entitled to place his own lock upon such manufactured home until his privilege is satisfied.
(2) The lessee shall be notified of the owner’s intention to enforce his privilege.
(3) The notice shall be delivered in person to the lessee or sent by certified mail to the last known address of the lessee.
(4) The notice shall include:
(a) A copy of any written lease agreement between the owner and defaulting lessee, or, if the lease agreement is verbal, a summary of its terms and conditions.
(b) An itemized statement of the owner’s claim, showing the sum due at the time of the notice and the date when the sum became due.
(c) The name of the owner of the abandoned manufactured home, if known, and a brief and general description of the abandoned manufactured home and abandoned movable property, including the serial and vehicle identification numbers of the abandoned manufactured home, if known, upon which a privilege is claimed. The description shall be reasonably adequate to permit the person notified to identify it, except that any container, including but not limited to a trunk, valise, or box that is locked, fastened, sealed, or tied in a manner which deters immediate access to its contents may be described as such without describing its contents.
(d) Notification that the lessee has been or shall be denied access to the abandoned manufactured home and abandoned movable property, if such denial is permitted under the terms of the lease agreement, with the name, street address, and telephone number of the owner or his designated agent whom the lessee may contact to respond to the notice.
(e) A demand for payment within a specified time not less than fifteen days after the date of mailing or delivery of the notice.
(f) A statement that the abandoned manufactured home, its contents, and any other abandoned movable property on the immovable property are subject to the owner’s privilege, and that, unless the claim is paid within the time stated in the notice, the abandoned manufactured home and abandoned movable property are to be advertised for sale or other disposition and to be sold or otherwise disposed of to satisfy the owner’s privilege for lease payments due and other charges at a specified time and place.
(5) Actual receipt of the notice made pursuant to this Section shall not be required. Within fourteen days after mailing of the notice, an advertisement of the sale or other disposition of movable property subject to the privilege shall be published on at least one occasion in a newspaper of general circulation where the abandoned manufactured home is located. The advertisement shall include:
(a) The name of the owner of the abandoned manufactured home, if known, and a brief and general description of the abandoned manufactured home and abandoned movable property, including the serial and vehicle identification numbers of the abandoned manufactured home, if known, reasonably adequate to permit its identification as provided by Subparagraph (4)(c) of this Subsection.
(b) The address of the immovable property upon which the abandoned manufactured home is located and the name of the lessee.
(c) The time, place, and manner of the sale or other disposition.
(6) The sale or other disposition of the abandoned manufactured home and abandoned movable property shall take place not sooner than thirty days following publication as required by this Section.
D.(1) Upon completion of the procedures required by Subsection C of this Section, the owner of the immovable property may file suit for possession or ownership of the abandoned manufactured home and abandoned movable property pursuant to Code of Civil Procedure Article 4912.
(2) The owner of the immovable property shall attach to the petition evidence of the lease agreement, copies of the notice and advertisement required by Subsection C of this Section, and evidence that the abandoned manufactured home is valued at less than five thousand dollars. If the serial or vehicle identification numbers are not known, the owner of the immovable property shall provide certification of a physical inspection of the abandoned manufactured home for the purpose of vehicle identification number verification by a law enforcement officer trained and certified by the Department of Public Safety and Corrections to inspect motor vehicles as provided in Chapter 4 of Title 32 of the Louisiana Revised Statutes of 1950. The certification shall certify that the serial or vehicle identification numbers are not known. The owner of the immovable property shall certify in his petition, or attach an affidavit of the owner of the immovable property attesting, that there is no mortgage, lien, privilege, or security interest encumbering the abandoned manufactured home based on a search of the parish mortgage records and records of the Department of Public Safety and Corrections, office of motor vehicles.
(3) Upon finding that the owner of the immovable property has satisfied the requirements of this Section, the court shall authorize the sale of the abandoned manufactured home and abandoned movable property by the petitioner.
E.(1) Upon obtaining approval from the court, the owner of the immovable property may proceed to sell the abandoned manufactured home and abandoned movable property. Any sale or other disposition of the abandoned manufactured home and abandoned movable property shall conform to the terms of the notification as provided by this Section.
(2) Any sale or other disposition of the abandoned manufactured home and abandoned movable property shall be held at the address of the immovable property where the abandoned manufactured home is located, as indicated in the notice required by this Section. The owner shall sell the abandoned manufactured home and abandoned movable property to the highest bidder, if any. If there are no bidders, the owner may purchase the movable property for a price at least sufficient to satisfy his claim for lease payments due and all other charges, or he may donate the abandoned manufactured home and abandoned movable property to charity.
(3) Prior to any sale or other disposition of the abandoned manufactured home or abandoned movable property to enforce the privilege granted by this Section, the lessee may pay the amount necessary to satisfy the privilege, including all reasonable expenses incurred under this Section, and thereby redeem the movable property. Upon receipt of such payment, the owner shall have no liability to any person with respect to such movable property.
(4) A purchaser in good faith of the abandoned manufactured home or abandoned movable property sold by an owner to enforce the privilege granted by this Section takes the property free of any claims or rights of persons against whom the privilege was valid, despite noncompliance by the owner with the requirements of this Section, but takes subject to any mortgages, liens, privileges, and security interests that encumber the abandoned manufactured home at the time of the sale.
(5) In the event of a sale held pursuant to the provisions of this Section, the owner may satisfy his privilege from the proceeds of the sale, but shall hold the balance, if any, as a credit in the name of the lessee whose property was sold. The lessee may claim the balance of the proceeds within two years of the date of sale, without any interest thereon, and if unclaimed within the two-year period, the credit shall become the property of the owner, without further recourse by the lessee. If the sale or other disposition of the abandoned manufactured home and abandoned movable property made pursuant to the provisions of this Section does not satisfy the owner’s claim for lease payments due and other charges, the owner may proceed by ordinary proceedings to collect the balance owed.
(6) After conclusion of the sale, the act of sale of the abandoned manufactured home may be filed with the court, and a judgment recognizing the sale shall be rendered by the court and recognized by the Department of Public Safety and Corrections pursuant to Code of Civil Procedure Article 4912.
Acts 2021, No. 25, §1.