Detailed Answer
To validate and certify an affidavit of collection under Louisiana law, you must follow a clear procedure. This process ensures your notice of default and intended sale of personal property complies with the Uniform Commercial Code (UCC) and public notice requirements.
1. Confirm Your Security Interest
First, verify that you hold a valid security interest in the collateral. Louisiana’s UCC requires a signed security agreement and proper perfection, typically by filing a financing statement (La. R.S. 10:9-203). Confirm that the financing statement accurately describes the collateral and names the debtor.
2. Draft the Affidavit of Collection
Next, draft the affidavit of collection, also known as an affidavit of default. Include:
- The names and addresses of the debtor and secured party.
- A clear description of the collateral.
- The date and nature of the debtor’s default.
- The total amount due, itemized with principal, interest, fees, and costs.
3. Notarize and Certify the Affidavit
Visit a Louisiana notary public to notarize the affidavit. The notary will verify your identity, witness your signature, and apply an official seal. This certification confirms the affidavit’s authenticity and is critical for public filings.
4. Serve Notice of Disposition
Louisiana’s UCC mandates reasonable notice before disposing of collateral. Send a written notice of intent to sell or otherwise dispose of the property to the debtor and any secondary obligors by certified mail at least 10 days before the sale (La. R.S. 10:9-611). Retain proof of mailing.
5. Conduct the Public Sale
Hold a commercially reasonable sale, publicly advertised if the collateral is consumer goods. Document the date, time, location, and results of the sale. Any sale must preserve the debtor’s right to surplus proceeds after satisfying the secured debt.
6. File an Affidavit of Sale
Within 30 days after the sale, prepare and file an affidavit of sale with the same office where the original financing statement was filed. Detail the disposition, purchase price, and application of proceeds. This step completes the collection process and clears your interest in the collateral.
Disclaimer: This article provides general information on Louisiana law and is not legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Always verify UCC statute numbers and links at the Louisiana Legislature website.
- Retain certified mail return receipts as proof of notice.
- Use clear, concise descriptions of personal property to avoid disputes.
- Keep all original documents, including the notarized affidavit and sale records.
- Consult counsel early if the debtor contests the process.