HARAHAN, La. – SB 768, a bill that provides procedures for taking repossession of a lender's collateral without judicial process, is expected to be signed by Louisiana Governor Kathleen Blanco this week. Sponsored by Sen. Ken Hollis (R-Metairie), the bill was passed 35-1 by the Senate and signed by the Speaker of the House last Friday. With the Governor's signature, the measure would become effective Jan. 1, 2005. The bill enables state- and federally-chartered financial institutions and other appropriately licensed, regulated lenders to send notices of repossession to borrowers after nonpayment of two consecutive loan or lease payments. The measure also provides for the licensing of repossession agents and a 10-day period for recovery of the borrower's personal property from the vehicle. Under current Louisiana law, a lender is required to notify a delinquent borrower, hire an attorney, file a lawsuit, have it served and obtain a judgment. Only then can local law enforcement officials or a repossession agent repossess the property. More than 90 Louisiana credit unions responded to the Louisiana Credit Union League's Call to Action in support of the bill.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.