Louisiana Revised Statutes 39:504 – A. It is the intention of the legislature that bonds issued by a governmental entity under this Part, or under any other statutory authority referenced herein, shall be secured debt
Terms Used In Louisiana Revised Statutes 39:504
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- bonds: means any bonds, notes, warrants, certificates of indebtedness, certificates of participation or other written contracts, agreements, or instruments evidencing the obligation of a governmental entity to repay borrowed money, regardless of the designation thereof. See Louisiana Revised Statutes 39:503
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Governmental entity: means any parish, municipality, school board, school district, or other political subdivision of the state, other than the city of New Orleans and its agencies, boards, authorities, and commissions, and other than the Sewerage and Water Board of New Orleans. See Louisiana Revised Statutes 39:503
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- State: means the state of Louisiana. See Louisiana Revised Statutes 39:503
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
A. It is the intention of the legislature that bonds issued by a governmental entity under this Part, or under any other statutory authority referenced herein, shall be secured debt entitled to the highest possible protection and priority afforded by the bankruptcy laws of the United States and this state. Therefore, the owner or owners of any such bonds are hereby granted and shall have a statutory lien on and a security interest in such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts as are pledged to the payment of such bonds, to the fullest extent and in the manner stated in this Part and in the proceedings authorizing such bonds, and any pledge or grant of a lien or security interest in such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts made by a governmental entity in connection with the issuance of bonds shall be valid, binding, and perfected from the time when the pledge or grant of lien or security interest is made. Such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts shall immediately be subject to the lien of such pledge and security interest without any physical delivery therefor or further act and the lien of such pledge and security interest shall be first priority and valid and binding as against all parties having claims of any kind in tort, contract, bankruptcy, or otherwise against the governmental entity, whether or not such parties have notice thereof. The owner or owners of bonds shall be secured creditors with respect to such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts, as the case may be.
B. Any bond issued under this Part or any other statutory authority referenced herein may contain a recital that refers to the statutory lien created by this Section and describes the taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts to which such statutory lien applies; however, the failure to include the aforesaid recital shall not affect the validity or efficacy of the statutory lien granted by this Section and by the proceeds authorizing such bonds.
C. No notice, filing, or other proceedings under Chapter 9 of the Louisiana Commercial Laws, La. Rev. Stat. 10:9-101 et seq., or any other provision of law for the perfection or priority of such pledge and security interest shall be necessary to perfect the statutory lien granted by this Section and by the proceedings authorizing such bonds.
D. The statutory lien shall also apply to and secure any administrative fees owed to the Clean Water State Revolving Fund or the Drinking Water Revolving Loan Fund, in connection with bonds that evidence an obligation to repay a loan from one of said revolving funds.
Acts 2018, No. 569, §1, eff. July 1, 2018.