Bulletin: LA2022001

Dear Associates:

The following is a summary of legislation that was passed during the 2022 Regular Session.

Donated Property Succession

Act 40. This statute repeals Civil Code Articles 897 and 898 and provides that ascendants do not inherit property donated to a predeceased descendant.

What you should know/do: In an intestate succession, donated property passes to the descendant heirs in the same fashion as all other property. (Effective August 1, 2022).

Copies of Death Certificates with Small Succession Affidavit

Act 44. This law amends Code of Civil Procedure Articles 3434 to provide that in a small succession affidavit, a copy of the death certificate may be attached, as a certified copy is no longer required.

What you should know/do: Revise title commitment requirement related to small succession affidavits to require a copy of the death certificate. (Effective August 1, 2022).

Payoffs for Superior Encumbrances During Foreclosure

Act 91. This new statute amends Code of Civil Procedure Art. 2336.1 dealing with superior encumbrances in foreclosure situations. It provides a method for a creditor of inferior rank to force a superior creditor to provide a payoff figure prior to the foreclosure sale.

What you should know/do: The wrongful refusal to provide a payoff figure results in damages payable to the inferior creditor. (Effective August 1, 2022).

Clerks of Court Prohibited from Turning Fax Machines Off

Act 115. This new act amends La.R.S. 13:850 (A) and (D) prohibiting clerks of court from voluntarily turning off their facsimile filing equipment for civil action filings.

What you should know/do: This law was amended to minimize priority issues for civil action filings received by fax vs. other methods.

Death of a Member of a Limited Liability Company

Act 156. This new act amends La.R.S. 13:1333 (A) and enacts R.S. 13:333 (E) and R.S.3:333.1 with regard to the death of a member or all members of a Limited Liability Company. If all members die, the succession representative of any member may petition a court to liquidate the LLC. If the sole member of a single-member LLC dies, the termination of the LLC does not result. Unless the articles or by-laws provide otherwise, the succession representative may exercise all of the rights of the deceased member in the LLC. A judgment of possession may pass all of these rights to the heir or heirs of the deceased member and the LLC will continue in existence.

What you should know/do: This provides a path for an LLC whose member(s) have died, and which own real estate, to continue to operate, and to sell or mortgage real estate. Be aware of the amendments by reading this act in full. (Effective August 1, 2022).

Remote Online Notarization

Act 192. This new act amends La. R.S. 35:626(B) relative to a remote online notarial act to more clearly define that the location of execution is deemed to be where the notary is physically located at the time of execution. (Effective June 12, 2022).

What you should know/do: Be aware that notaries must be authorized in the parish where they are physically sitting when notarizing an online notarial act.

“Bricks and Mortar Law”

Act 264. This new statute amends and reenacts La. R. S.22:512(b), the introductory paragraph of 22:513(C) and (C)(2), as well as 512(1.1), (9.1) and (12.1) of what is called “the bricks and mortar law” to the definitions of “affiliated business,” “full-time employee”, “agency title producer” and “principal place of business.” Pursuant to these new definitions, the statute requires an agency title producer employ at least one designated resident individual producer with an affiliation with the entity, such as an ownership interest, a role as an officer, director, employee, or other relationship sufficient to influence the entity to comply with Louisiana’s insurance law and regulations.

What you should know/do: You should read the amended statutes in their entirety to ensure you have the proper principal place of business and designated resident individual producer as newly defined to operate a title agency in Louisiana. (Effective August 1, 2022).

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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