Louisiana § RS 9:2717.1.6 - Protection of ownership interests

§ RS 9:2717.1.6. Protection of ownership interests

            A. All forfeitures or dispositions under this Part shall be made with due provisions for the rights of any person who did not knowingly enter into a transaction with the foreign adversary or the prohibited foreign actor.

            B. No mortgage, lien, privilege, or other security interest recognized under the laws of this state and no ownership interest in indivision, lease, servitude, usufruct, right of use, bond for deed, or other real right shall be affected by the forfeiture, seizure, or divestiture provisions of this Part.

            C.  No forfeiture or disposition pursuant to this Part shall affect the rights of any person who did not knowingly enter into a transaction with the foreign adversary or a prohibited foreign actor.

            D. The attorney general shall, within three business days of instituting any action pursuant to this Part, file a copy of the petition or other pleading instituting the action in the mortgage records of the parish where any related immovable property is situated.

            E. The attorney general shall provide notice of pending forfeiture, seizure, or divestiture to the holder of each mortgage, lien, or security interest in the same manner as provided in R.S. 14:90.1 or R.S. 40:2608.

            F. The attorney general shall provide notice of pending forfeiture, seizure, or divestiture to the holder of any interest in the immovable property being seized.

            G. The attorney general may cause the cancellation of the petition or other pleading from the mortgage records no later than three business days after judgment is rendered or after a request for cancellation is made by any interested party seeking to transfer the property to a person other than a foreign adversary or a prohibited foreign actor. If the petition or other pleading relates to a property interest vested in a foreign adversary or a prohibited foreign actor, the attorney general may petition the court for an order requiring that the proceeds of the sale attributable to the property interest of the foreign adversary or a prohibited foreign actor be deposited in the registry of the court where the proceeding is pending after the deduction of payments to mortgagees, lienholders, person providing services in connection with the transfer of the property, and credits to the purchaser relating to tax and other customary prorations.

            Acts 2026, No. 845, §1.