| Civil Code Article 870-2June 19, 2019 |
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When an adjustment is made to the proportional share of preferential right to satisfaction, if the claim secured by the higher ranking mortgage is also secured by a guarantor, the guarantor shall be exempted from liability to the extent of any loss of the benefits of preferential satisfaction that results from the adjustment, unless the adjustment is made with the consent of the guarantor. |
| Civil Code Article 870June 19, 2019 |
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A mortgage may neither be transferred nor furnished as security for any other claim by separating it from the claim that it secures. Details > |
| Civil Code Article 870-1June 19, 2019 |
If there are multiple mortgages on the same mortgaged property, a mortgagee may adjust its proportional share of preferential right to satisfaction by the following means, provided that the interests of the other mortgagees are not thereby affected: "1. Assigning the priority ranking of its mortgage in favor of a specified mortgagee. "2. Waiving the priority ranking of its mortgage in favor of a specified mortgagee of lesser priority. "3. Waiving the priority ranking of its mortgage in favor of all mortgagees of lesser priority. "No assignment or waiver of the priority ranking of a mortgage pursuant to the preceding paragraph will take effect without registration. Prior to such registration, the mortgagee shall notify the debtor, the mortgagor, and any joint mortgagors. "A mortgagee who benefits from an adjustment in priority rankings under paragraph 1 also may enforce the mortgage with the higher pre-adjustment ranking. "When an adjustment is made to the proportional share of preferential right to satisfaction, if the claim secured by the higher ranking mortgage is also secured by real property of a third party, the mortgage to which the third party's real property is subject will be extinguished to the extent of any increase in encumbrance on the property that results from the adjustment, unless the third party has otherwise given its consent. Details > |
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