La. Stat. tit. 10 § 9-407

Current with changes from the 2024 legislative session effective on or before 7/1/2024, from Acts 1-3, 6-671

Section 10:9-407 - Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest

(a) Term restricting assignment generally ineffective. Except as otherwise provided in Subsection (b), a term in a lease is ineffective to the extent that it:

(1) prohibits, restricts, or requires the consent of a party to the lease to the creation, attachment, perfection, or enforcement of a security interest in an interest of a party under the lease or in the lessor's residual interest in the goods; or

(2) provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.

(b) Effectiveness of certain terms. A term described in Subsection (a)(2) is effective to the extent that there is:

(1) a transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or

(2) a delegation of a material performance of either party to the lease in violation of the term.

(c) [Reserved.]

La. R.S. § 10:9-407

Acts 1988, No. 528, §1, eff. 1/1/1990; Acts 1989, No. 135, §7, eff. 1/1/1990; Acts 1990, No. 1079, §4, eff. 9/1/1990; Acts 1991, No. 377, §4, eff. 1/1/1992; Acts 2001, No. 128, §1, eff. 7/1/2001.