Terms Used In Louisiana Revised Statutes 9:3137.3

  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • 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.
  • person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC

A.  For the purposes of this Part, the following terms shall have the following meanings unless the context clearly indicates otherwise.

(1)  “Buyer” means the person buying a receivable over an exchange located in this state.

(2)  “Collection proceeds” means any amounts received or otherwise collected from the person owing the receivable, including the account debtor or a guarantor of the payment obligation.

(3)  “Consummate” means to complete all agreements, steps and actions necessary for a sale of receivables to be deemed to be complete under Louisiana law, with ownership of the purchased receivable passing from the seller to the buyer.

(4)  “Exchange” means an electronic or other marketplace over which sellers may offer and sell their receivables to qualified buyers.

(5)  “Operational employees” means and refers to employees whose work responsibilities are primarily devoted to performing operations-related functions related to the exchange and persons transacting business over the exchange, as compared to employees whose primary work responsibilities are devoted to managerial, marketing, sales, internal accounting and other non-operational functions.

(6)  “Receivable” means an account, general intangible, payment intangible, chattel paper or instrument as defined under the UCC.  Receivables shall also include third-party payment obligations that are not subject to the UCC.  Receivables shall not be limited to United States domestic payment obligations, and shall include receivables owed by non-United States persons and entities as well as receivables originating out of non-United States transactions.

(7)  “Seller” means the person offering a receivable for sale over an exchange located in this state.

(8)  “True sale” means a consummated sale of all rights, title and interests that the seller may have in a receivable sold over an exchange located in this state, with the buyer acquiring all of the seller’s rights and interests, and with the seller not retaining a legal or equitable interest in the receivables sold.

(9)  “UCC” means the Uniform Commercial Code of any state and the comparable laws of foreign non-United States jurisdictions.  In Louisiana, “UCC” means and refers to Chapter 9 of the Louisiana Uniform Commercial Code, La. Rev. Stat. 10:9-101, et seq.

B.  All terms used, but not defined in this Part, shall have the meanings found in the UCC, the Louisiana Revised Statutes of 1950, and the Civil Code.

Acts 2010, No. 958, §1, eff. July 6, 2010.