LA Notary - Louisiana Notary Exam Mortgages and Security Devices 1

Question 1

What creates a judicial mortgage in Louisiana?

Accepted Answer

The recording of a final judgment in the mortgage records of the parish where the debtor owns immovable property

Answer

A judicial mortgage arises from the recordation of a final judgment in the parish mortgage records. The judgment itself does not create the mortgage — it is the act of recording that encumbers the debtor's immovable property located in that parish.

Question 2

When two conventional mortgages encumber the same Louisiana immovable property, how is their relative priority determined?

Accepted Answer

By the date and time each mortgage was recorded in the parish mortgage records

Answer

Under Louisiana law, mortgage priority follows the principle of 'first in time, first in right' based on recordation. The mortgage recorded earlier in the parish mortgage records takes priority over one recorded later, regardless of when the acts were signed.

Question 3

What does it mean for a Louisiana notary to 'paraph' a promissory note ne varietur?

Accepted Answer

To mark or sign the note so as to identify it with the act of mortgage and prevent alteration

Answer

Ne varietur means 'it shall not be altered.' When a notary paraphs a note ne varietur, the notary places an identifying mark or signature on the note tying it to the specific act of mortgage, establishing the connection between the two instruments and protecting against substitution or alteration.

Question 4

What is the purpose of 'reinscription' of a mortgage in Louisiana?

Accepted Answer

To extend the effectiveness of the mortgage inscription and preserve its priority against third parties

Answer

A recorded mortgage loses its effectiveness against third parties after a set prescriptive period unless it is reinscribed before that period expires. Reinscription preserves the mortgage's rank and effect in the public records, preventing it from lapsing.

Question 5

Under Louisiana law, which type of property may be encumbered by a pledge as a security device?

Accepted Answer

Movable property such as personal property and negotiable instruments

Answer

A pledge is a security device that encumbers movable property by placing it in the possession of the creditor or a third party. Immovable property, by contrast, is encumbered by a mortgage. This distinction between pledge (movables) and mortgage (immovables) is fundamental under Louisiana law.

LA Notary - Louisiana Notary Exam Practice Test

LA Notary - Louisiana Notary Exam Practice Test

LA Notary - Louisiana Notary Exam Mortgages and Security Devices 1