USA – LOUISIANA Law and Practice Contributed by: Jeffrey P. Good, Susan M. Tyler and B. Trevor Wilson, Jones Walker LLP
or local government issuer for private business financings). In order to finance a project with the proceeds of tax-exempt qualified private activity bonds, a borrower must identify a conduit issuer. Local port, terminal and harbour districts are used for projects within the boundaries of a Louisiana port. The IRC provides that small- issue manufacturing bonds, subject to a limit of USD10 million, may be used for expansion and investment in existing manufacturing facili - ties or in the development of new manufacturing facilities. Exempt facility bonds may be used to finance other infrastructure projects, including docks and wharves, water, sewerage, qualified residential projects, green building and sustain - able design projects and other similar projects, provided the projects comply with the restric - tions imposed by the IRC. Tax increment financing and community devel - opment districts may also provide tax-exempt or tax-reduced financing vehicles. 3.2 Typical Security Created by Commercial real estate acquisitions are col - lateralised by security instruments that effect a mortgage, lien or security interest on the real estate, such as buildings and improvements, together with other collateral associated with the transaction, including, without limitation, pledges of leases and rents, security interests in tangible and intangible personal property, col - lateral assignments of insurance proceeds and contracts – ie, construction contracts and other security interests, including reserve accounts. Unlimited or limited personal guaranties may be required, depending on the structure of the transaction. Commercial Investors Typical Security Interests
Deeds of trust are not recognised in Louisiana. Forms of mortgage Although three forms of mortgage are recognised in Louisiana, the primary form is the multiple indebtedness mortgage, which was created by statute in 1991 and may secure existing obliga - tions, obligations contemporaneously incurred with the execution of the mortgage and specific, general or indefinite future obligations, provided the mortgage expressly and specifically sets forth the maximum amount of indebtedness it is intended to secure. The mortgage is effective upon execution; for third parties, it is effective from the date it is filed for registry in the proper records of the appropriate jurisdiction. Recor - dation of a mortgage is effective for a period of ten years from the date of recordation, unless the mortgage describes a note with a payment maturity of nine years or more, in which case it will remain effective for six years following the note’s stated maturity date. Reinscription To continue the effect of recordation beyond ten years, it is necessary to reinscribe the mortgage by filing a written notice of reinscription including the name of the mortgagor and the recordation information from the original mortgage, stating that the mortgage is reinscribed. The effect of reinscription lasts for ten years from the date the notice of reinscription is recorded. 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders Louisiana does not impose any regulations or restrictions on a foreign lender’s ability to make loans or accept mortgages or other security interests in Louisiana, subject to the caveat that foreign lenders may be subject to other federal laws and regulations. Louisiana Revised Statutes 12:302 provides that a foreign corporation shall
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