Mortgages and Security Devices Flashcards
6 cards from real LA NOTARY practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Mortgages and Security Devices flashcards as text
Under Louisiana law, what is a conventional mortgage?
Answer: A mortgage created by agreement between the mortgagor and mortgagee to secure a debt
A conventional mortgage is created by contract between the parties.
What is the effect of recording a mortgage in the parish mortgage records in Louisiana?
Answer: It provides notice to third parties and establishes the mortgage's ranking priority among creditors
Recording gives the mortgage effect against third parties and establishes priority.
Under Louisiana law, what is a legal mortgage?
Answer: A mortgage that arises by operation of law without a contract, such as a vendor's lien or a tax lien
Legal mortgages arise automatically by operation of law in certain situations.
What is a collateral mortgage in Louisiana?
Answer: A mortgage package consisting of a mortgage note, a collateral mortgage act, and a hand note, used to secure present and future indebtedness
A collateral mortgage is a unique Louisiana device using a mortgage note pledged as security for a hand note.
Under Louisiana law, how long does a mortgage inscription remain effective in the public records?
Answer: Generally ten years from the date of the mortgage act, subject to reinscription
A mortgage inscription is generally effective for ten years and must be reinscribed to maintain effectiveness.
What is a privilege in Louisiana security device law?
Answer: A right of preference given by law to certain creditors to be paid before other creditors
A privilege is a statutory right giving certain creditors priority in payment over other creditors.