Louisiana § RS 40:488 - Recourse obligations and cross-collateralization
Full text of Louisiana Louisiana Civil Code § RS 40:488 — Recourse obligations and cross-collateralization, with citation guidance and answers to common questions.
§ RS 40:488. Recourse obligations and cross-collateralization
No guaranty, other recourse obligation, mortgage, or security instrument, or other instrument (recourse instrument) given or entered into by a housing authority in connection with financing the acquisition, creation, modernization, rehabilitation, or replacement of a development, which exposes to foreclosure, loss, or levy any property of the housing authority other than the development being acquired, created, modernized, rehabilitated, or replaced with the proceeds of such financing shall be given or entered into, unless the authority's board of commissioners shall have specifically approved such action by resolution which finds that such action:
(1) Is necessary and essential to acquiring the financing with respect to which such recourse instrument is given or entered into.
(2) Will not unreasonably expose to loss or foreclosure property of the authority other than the development for which financing will be used.
(3) Is prudent and sound as required under R.S. 40:489.
(4) Is commercially reasonable, taking into account the characteristics of the transaction in which such recourse instrument would be given and its relative benefits and potential costs to the authority.
Acts 1997, No. 1188, §1.
Source: official Louisiana text · Last verified 2026-08-27
Frequently Asked Questions About Louisiana § RS 40:488
What does Louisiana Civil Code § RS 40:488 cover?
Section RS 40:488 ("Recourse obligations and cross-collateralization") is part of the Louisiana Civil Code, the codified statutory law of Louisiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Louisiana § RS 40:488?
A common citation format is "Louisiana Civil Code § RS 40:488" (Louisiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Louisiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Louisiana official source linked on this page or consult a licensed Louisiana attorney.
How does Louisiana § RS 40:488 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Louisiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Louisiana.