Bill > SB77

This bill modifies Louisiana Civil Code articles concerning leases of movable and immovable property to clarify the effects of such leases, particularly concerning third parties and the rights of lessees and lessors. It establishes that a lease of a corporeal movable (a physical, movable item) by a merchant who is not the owner can be binding against the owner if the merchant has possession with the owner's consent, leases the item in good faith for fair value in the regular course of business. The bill also clarifies that a lease of an immovable (like land or a building) is effective against third parties once it is filed for registration, and a lease of a movable is effective against third parties upon actual delivery to a good-faith lessee, ceasing to be effective when the item is returned to the lessor. Furthermore, it clarifies that the transfer of leased property by the lessor does not terminate the lease, and the lessee retains the right to sue the lessor for any losses incurred due to the transfer, while the transferee of the property is not automatically bound by the lessor's obligations unless they assume them. The bill also explicitly grants both parties the right to assign or encumber their rights in the lease, and the lessee the right to sublease, unless expressly prohibited by the lease contract, with specific rules for immovables and movables. Finally, it introduces a provision stating that a sublessee or assignee generally acquires no greater rights than the original lessee, with exceptions for good-faith lessees of movables under specific circumstances.

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https://www.legis.la.gov/legis/BillInfo.aspx?s=26rs&b=SB77&sbi=y