RS 10:9-412 Discharge of tortfeasor; notification and filing of assignment - Louisiana Statutes

§9-412.  Discharge of tortfeasor; notification and filing of assignment

(a)  Discharge of tortfeasor.  Subject to subsections (b) through (c), a person obligated on a tort claim may discharge its obligation by paying the debtor until, but not after, the person receives a notification, authenticated by the debtor or the secured party, that the amount due has been assigned and that payment is to be made to the secured party.  After receipt of the notification, the person may discharge its obligation by paying the secured party and may not discharge the obligation by paying the debtor.

(b)  When notification ineffective.  Notification is ineffective under subsection (a) if it does not reasonably identify the rights assigned.

(c)  Proof of security interest.  If requested by the person obligated on the tort claim, a secured party shall seasonably furnish to the person reasonable proof that the assignment of the tort claim has been made.  Unless the secured party complies, the person may discharge its obligation by paying the debtor, even if the person has received a notification under subsection (a).

(d)  Enforcement.  After notification, the secured party has the rights established under R.S. 13:3864 through 13:3868.

Acts 2001, No. 128, §1, eff. July 1, 2001.