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 conventional mortgage is created by contract between the parties.

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

Recording gives the mortgage effect against third parties and establishes priority.

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

Legal mortgages arise automatically by operation of law in certain situations.

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 collateral mortgage is a unique Louisiana device using a mortgage note pledged as security for a hand note.

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

A mortgage inscription is generally effective for ten years and must be reinscribed to maintain effectiveness.

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