{"data":{"id":"us-la/rs-10-9-407","jurisdiction":"us-la","citation":"RS 10:9-407","heading":"Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest","body":"(a) Term restricting assignment generally ineffective. Except as otherwise provided in Subsection (b), a term in a lease is ineffective to the extent that it:\n(1) prohibits, restricts, or requires the consent of a party to the lease to the creation, attachment, perfection, or enforcement of a security interest in an interest of a party under the lease or in the lessor's residual interest in the goods; or\n(2) provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.\n(b) Effectiveness of certain terms. A term described in Subsection (a)(2) is effective to the extent that there is:\n(1) a transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or\n(2) a delegation of a material performance of either party to the lease in violation of the term.\n(c) [Reserved.]","path":["TITLE 10. COMMERCIAL LAWS"],"source_url":"https://www.legis.la.gov/legis/Law.aspx?d=74453","current_through":"2025 First Extraordinary Session","vintage":"","retrieved_at":"2026-09-14T04:50:09Z","sha256":"9247353cda5eb9c1e09841563eff7ed257392edf95b93ad7611ab32dfe3d76ab","source_id":"us-la","stale":false,"prev":"us-la/rs-10-9-406","next":"us-la/rs-10-9-408"},"notice":"GroundRules: Original legal text. Not legal advice."}