Louisiana § RS 33:3337 - Transfer of assessments and notes to contractor; borrowing money; issuance of note and certificates of indebtedness

§ RS 33:3337. Transfer of assessments and notes to contractor; borrowing money; issuance of note and certificates of indebtedness

The assessments and the notes executed by the property owners, may be transferred by the city, without recourse, to the contractor at their face value, and the contractor, or his transferees shall enjoy the lien and privilege and all other rights provided in this Sub-part accruing to the municipality ordering the work.  In the event that the municipality itself undertakes the work, it may borrow money to the extent of the estimated costs of material and work to be done, and as security, pledge the claim for costs, which it holds against the owners of the property abutting on the improvements, issuing temporarily and pending the completion of the improvement, its own note, bearing not more than six per cent per annum interest, which interest shall form a part of the cost of the improvements, and upon completion of the improvement, or each unit thereof, shall issue to the lender its certificate of indebtedness, bearing not more than six per cent interest per annum, to represent the unpaid portion of the money borrowed, payable according to the average maturities of the deferred payments, authorized under R.S. 33:3336 which certificates when tendered to the lender shall be accepted and operate as a cancellation pro tanto of the amount borrowed.  Upon the tender to the lender of all certificates and cash collected and the transfer by the municipality to the lender of the judgments it may have obtained against defaulting assessment debtors or as much thereof as may be necessary to retire the loan in principal and interest, the loan shall be cancelled and the municipality relieved of all further liability therefor.  The municipality may pledge the notes of the property owners as security for the payment of the certificates.