In an effort to end confusion and establish uniformity, the Louisiana Legislature has enacted revised mortgage cancellation procedures. House Bill 739, Act 337, effective August 15, 2007, amends and reenacts La. R.S. 9:3567 and La. R.S. 44:106(A), 109(A), and 110 and enacts La. R.S. 44:109.1 in connection with the cancellation of mortgages and vendor's privileges. Essentially a single uniform cancellation form is now available to "licensed financial institutions" in order to cancel a mortgage in any parish in the State of Louisiana. The form must identify the mortgagor and mortgagee, date of instrument, parish of recordation, recording data, legal description of the property secured, and language stating that the filer is a "licensed financial institution" and requires language limiting the clerk's liability. Execution by a bank officer and notary public is also required.
An affidavit of the closing notary is now also permitted to cancel a mortgage or vendor's privilege, when the debt has been paid but where the notary has lost the paraphed (marked for identification) note or other evidence of cancellation.
Lastly, in the instance where a title policy covering the immovable property is issued when the paraphed note or other evidence of cancellation is lost, an officer of a title insurer may now file an affidavit to cancel a mortgage or vendor's privilege.