LA Notary Mortgages and Security Devices 2

Question 1

Under Louisiana law, what is a conventional mortgage?

Accepted Answer

A mortgage created by agreement between the mortgagor and mortgagee to secure a debt

Answer

A mortgage created by court order

Answer

A mortgage imposed by operation of law

Answer

A mortgage created by government regulation

Question 2

What is the effect of recording a mortgage in the parish mortgage records in Louisiana?

Accepted Answer

It provides notice to third parties and establishes the mortgage's ranking priority among creditors

Answer

It has no legal effect

Answer

It automatically forecloses the property

Answer

It transfers ownership to the creditor

Question 3

Under Louisiana law, what is a legal mortgage?

Accepted Answer

A mortgage that arises by operation of law without a contract, such as a vendor's lien or a tax lien

Answer

A mortgage created by contract

Answer

A mortgage approved by an attorney

Answer

A mortgage insured by the government

Question 4

What is a collateral mortgage in Louisiana?

Accepted Answer

A mortgage package consisting of a mortgage note, a collateral mortgage act, and a hand note, used to secure present and future indebtedness

Answer

A second mortgage on the same property

Answer

A mortgage on personal property only

Answer

A shared mortgage between two property owners

Question 5

Under Louisiana law, how long does a mortgage inscription remain effective in the public records?

Accepted Answer

Generally ten years from the date of the mortgage act, subject to reinscription

Answer

Indefinitely until released

Answer

Five years

Answer

Until the underlying debt is paid

Question 6

What is a privilege in Louisiana security device law?

Accepted Answer

A right of preference given by law to certain creditors to be paid before other creditors

Answer

A special right enjoyed by wealthy individuals

Answer

An exemption from taxation

Answer

A type of insurance policy