LOUISIANA SECURITY DEVICE SURVEY Fr 13 Mar
Professor Trahan
Course Outline: Installment 25
. . .
II Corpus
A Real security
1 Volitional real security
a Concept
b Classifications
1) Volitional real movable security (“Article 9 security interests”)
. . .
2) Volitional real immovable security (“mortgages”)
. . .
c) Classifications
1] Conventional mortgages
. . .
e] Effects of conventional mortgages
1} As between the mortgagor and mortgagee
3} As between the morgagee and third parties
f] Varieties of conventional mortgages
1} Mortgage to secure a single contemporaneous advance
(the “plain vanilla” mortgage)
2} Mortgage to secure determinate future advances (e.g.,
“construction mortgages”)
3} Mortgage to secure indeterminate future advances
(revolving line of credit)
a} The old law
(pre-1993)
1/ The problem
2/ The “solution”: the “collateral mortgage”
a/ Prolegomena
1o Article 9 security interest in “chattel
paper”
2o “Old” Louisiana “pledge” law
b/ Explication
1o Elements of the “collateral mortgage
package”
ao The pledge element
1* The collateral mortgage (ne
varietur) note
2o The hand note
bo The mortgage element
2o Saving the package from prescription
ao Interruption of prescription on the
collateral mortgage note
bo Interruption of prescription on the
hand note
b} The “new” law
1/ Retention of the collateral mortgage
2/ Development of the new “multiple-indebtedness
mortgage” (MIM)
a/ The need for something new
b/ Explication
