SB77

Louisiana SB77 amends lease laws to clarify effects on third parties for leases of movable property.

Louisiana SB77 amends the Civil Code to clarify the effects of leases of movable property on third parties. The bill specifies that a lease of a movable is effective against third persons upon actual delivery to the lessee in good faith. It also allows a lessee to assign or encumber their rights in the lease, and a lessor to assign or encumber their rights, unless prohibited by the lease terms. The bill further clarifies that a transfer of a leased movable by the lessor does not terminate the lease unless the parties agreed otherwise.