§5386. Mortgage including collateral assignment and pledge of certain incorporeal rights
A. A mortgage of immovable property may provide for the collateral assignment or pledge of the right to receive proceeds attributable to the insurance loss of the mortgaged property. Such collateral assignment or pledge shall have effect, other than between the immediate parties, or those on whose behalf or for whose benefit they act, and shall be deemed perfected by the proper recordation of the mortgage in the mortgage records of the parish in which the immovable is situated.
B. The rights of the mortgagee against the insurer shall be subject to any dealing by the insurer with the mortgagor, any other assignee or pledgee, or other successor in interest of the mortgagor until the insurer receives written notice from or on behalf of the mortgagee or the mortgagor of the collateral assignment or pledge of the right to receive the insurance proceeds. In any case in which an insurer is not notified in writing of the assignment or pledge of the right to receive insurance proceeds made in compliance with the provisions of this Section and, in good faith, makes payment of the insurance proceeds attributable to the loss of the mortgaged property in whole or in part to the mortgagor, any other assignee or pledgee, or other successor in interest of the mortgagor, then, to the extent of payment, the insurer shall be exonerated of liability to make payment to the mortgagee; however, the person to whom payment was made shall be accountable and liable to the mortgagee for the sums received. Nothing contained in this Section shall be construed to modify the obligations of any insurer under any simple or standard or other loss payee clause of its insurance policy or endorsement.
C. A mortgage shall not be deemed to be invalid, ineffective or fraudulent against other creditors by reason of the mortgagor's freedom to use, commingle or dispose of proceeds from the insurance loss of the mortgaged property, or by reason of the mortgagee's failure to require the mortgagor to account therefor.
§5386. Mortgage including collateral assignment and pledge of certain incorporeal rights
A. A mortgage of immovable property may provide for the collateral assignment or pledge of the right to receive proceeds attributable to the insurance loss of the mortgaged property. Such collateral assignment or pledge shall have effect, other than between the immediate parties, or those on whose behalf or for whose benefit they act, and shall be deemed perfected by the proper recordation of the mortgage in the mortgage records of the parish in which the immovable is situated.
B. The rights of the mortgagee against the insurer shall be subject to any dealing by the insurer with the mortgagor, any other assignee or pledgee, or other successor in interest of the mortgagor until the insurer receives written notice from or on behalf of the mortgagee or the mortgagor of the collateral assignment or pledge of the right to receive the insurance proceeds. In any case in which an insurer is not notified in writing of the assignment or pledge of the right to receive insurance proceeds made in compliance with the provisions of this Section and, in good faith, makes payment of the insurance proceeds attributable to the loss of the mortgaged property in whole or in part to the mortgagor, any other assignee or pledgee, or other successor in interest of the mortgagor, then, to the extent of payment, the insurer shall be exonerated of liability to make payment to the mortgagee; however, the person to whom payment was made shall be accountable and liable to the mortgagee for the sums received. Nothing contained in this Section shall be construed to modify the obligations of any insurer under any simple or standard or other loss payee clause of its insurance policy or endorsement.
C. A mortgage shall not be deemed to be invalid, ineffective or fraudulent against other creditors by reason of the mortgagor's freedom to use, commingle or dispose of proceeds from the insurance loss of the mortgaged property, or by reason of the mortgagee's failure to require the mortgagor to account therefor.
§5386. Mortgage including collateral assignment and pledge of certain incorporeal rights
A. A mortgage of immovable property may provide for the collateral assignment or pledge of the right to receive proceeds attributable to the insurance loss of the mortgaged property. Such collateral assignment or pledge shall have effect, other than between the immediate parties, or those on whose behalf or for whose benefit they act, and shall be deemed perfected by the proper recordation of the mortgage in the mortgage records of the parish in which the immovable is situated.
B. The rights of the mortgagee against the insurer shall be subject to any dealing by the insurer with the mortgagor, any other assignee or pledgee, or other successor in interest of the mortgagor until the insurer receives written notice from or on behalf of the mortgagee or the mortgagor of the collateral assignment or pledge of the right to receive the insurance proceeds. In any case in which an insurer is not notified in writing of the assignment or pledge of the right to receive insurance proceeds made in compliance with the provisions of this Section and, in good faith, makes payment of the insurance proceeds attributable to the loss of the mortgaged property in whole or in part to the mortgagor, any other assignee or pledgee, or other successor in interest of the mortgagor, then, to the extent of payment, the insurer shall be exonerated of liability to make payment to the mortgagee; however, the person to whom payment was made shall be accountable and liable to the mortgagee for the sums received. Nothing contained in this Section shall be construed to modify the obligations of any insurer under any simple or standard or other loss payee clause of its insurance policy or endorsement.
C. A mortgage shall not be deemed to be invalid, ineffective or fraudulent against other creditors by reason of the mortgagor's freedom to use, commingle or dispose of proceeds from the insurance loss of the mortgaged property, or by reason of the mortgagee's failure to require the mortgagor to account therefor.
