Current with changes from the 2024 Legislative Session
Section 2336.1 - Determination of superior encumbrances or privilegesA. To determine the amount due to the owner of any mortgage, security interest, lien, privilege, or other encumbrance that is superior to that of the seizing creditor, hereinafter "superior encumbrance", the sheriff or the seizing creditor may cause a subpoena duces tecum to be issued by the clerk of court to the owner or servicer of an obligation secured by a superior encumbrance, requiring that the owner or servicer of any such obligation produce to the sheriff or to the seizing creditor a document setting forth the amount due to the owner of the obligations secured by the superior encumbrance, as of the scheduled date of the sheriff's sale. The subpoena duces tecum shall be served on the owner or servicer of the superior encumbrance at least fourteen calendar days before the response is due, and shall be made returnable at least seven calendar days prior to the scheduled date of the sheriff's sale, at the office of the sheriff or at the office of the seizing creditor or its attorney. If the owner or servicer of the superior encumbrance has a registered agent for service of process in the state, service of process shall be made by one of the following methods:(1) The subpoena shall be served on the registered agent by the sheriff.(2) If service is made through certified mail or overnight courier, the envelope shall be directed to the attention of the registered agent.B. The owner or servicer shall respond to the sheriff or the seizing creditor, depending on who has caused the subpoena duces tecum to issue, at least seven calendar days prior to the scheduled sheriff's sale. The response shall include the total amount of all obligations secured by the superior encumbrance, and shall itemize the amount due on each obligation by setting out the principal, accrued interest, any negative or positive escrow, any other charges or expenses of all obligations secured by the superior encumbrance, and any attorney fees, court costs, and sheriff's costs that have been incurred in connection with the enforcement of the superior encumbrance or the obligations secured by the superior encumbrance. If a response is timely made, no personal appearance shall be required in connection with the subpoena duces tecum.C. The subpoena duces tecum may be served by the sheriff or by the seizing creditor either in accordance with the procedure for subpoenas in Chapter 1 of Title III of Book II of this Code, or by certified mail, return receipt requested, or by commercial courier. The subpoena duces tecum may be served within or outside of the state.D. More than one subpoena duces tecum may be issued in connection with a superior encumbrance.E. If the date of the sheriff's sale is postponed, or stopped and thereafter rescheduled, the seizing creditor may request that the owner or servicer of the superior encumbrance update the amounts due. The request shall be made in writing and served on the owner or servicer of the superior encumbrance either in the manner required for subpoenas, or by certified mail, return receipt requested, or by recognized overnight courier, at least fourteen days before the response is due. The response shall be due at least seven days prior to the sale date. If the owner or servicer of the superior encumbrance has a registered agent for service of process in the state, service of process shall be made by one of the following methods:(1) The request shall be served on the registered agent by the sheriff.(2) If service is made through certified mail or overnight courier, the envelope shall be directed to the attention of the registered agent.F. Nothing in this Article shall prohibit the owner or servicer of a superior encumbrance from voluntarily providing the requested information without the necessity of a subpoena duces tecum or written request, or from voluntarily waiving or accepting service of the subpoena duces tecum or written request.G. The owner or servicer of the superior encumbrance may update or correct its latest response by providing to the sheriff or the seizing creditor, depending on at whose request the latest subpoena duces tecum or written request was issued, with an updated or corrected response, if the updated or corrected response is received at least twenty-four hours before the time scheduled for the sheriff's sale.H. If the owner or servicer of the superior encumbrance is a bank as defined in R.S. 6:333(A) or an affiliate as defined in R.S. 6:333(A), then it will be entitled to charge a reasonable fee, not to exceed twenty-five dollars, for each time that information is requested or updates of information provided. The fee shall be payable only after the requested information has been provided to the person requesting the information, which fees shall be taxed as costs.Added by Acts 2022, No. 91,s. 1, eff. 8/1/2022.