LBA State Legislation

The state legislature convenes April 10 with the budget and taxes as the focus.  For that reason, the LBA has a limited agenda this year.  We have seen legislation introduced that would increase taxes on banking.  Stay tuned and be ready to engage in making you banks voice heard.  The LBA Bankers Day at the Capitol is April 26 and we expect Governor Edwards to speak to our group.  Commissioner Ducrest should also be in attendance.  Please try to join us make an impact in Baton Rouge.  The focus of the LBA’s state legislative agenda for 2017 is to facilitate the execution of certain bank-related documents that have traditionally required the signature of a notary but that may not necessarily be needed.  Instead of having the notary sign the document, the document could be signed by authorized bank officers.  There are two areas where we think this makes sense.  One area is with a bank’s mortgage cancellation or partial release of mortgage documents.  Instead of having the cancellation prepared and signed by one bank representative and then signed by a notary, allow the cancellation or partial release form to be signed by two authorized bank officers.  

The second area involves secured loans for the purchase of certain used movable assets that are titled.  Currently, when a bank makes a loan to a customer to purchase a used car, ATV, trailer, small boat, or motor, the seller signs the back of the title and has it signed by a notary.  The bank takes a security interest in this titled asset by taking the old title and submitting it to the Office of Motor Vehicles through a public tag agent or directly, or to the Department of Wildlife and Fisheries if it is a boat or outboard motor, along with its financing statement so that a  new title may be issued showing the new owner and the bank’s lien.  Our proposal is to allow an authorized bank officer to witness the seller’s signature on the back of the title.  This would only be done in connection with a loan by the bank.  Both of these initiatives should help increase efficiency and allow a bank to better serve its customers.