2011 Louisiana Laws
Revised Statutes
TITLE 46 — Public welfare and assistance
RS 46:2395 — Defaulting

§2395. Defaulting

If the private, nonprofit organization which has received a loan under this Chapter ceases to accept appropriate clients, provide adequate care and maintenance to clients, or files papers of bankruptcy, at that time the remaining unforgiven portion of the loan shall be repaid within a one-year period from the date on which the program ceases to provide care or files papers in bankruptcy, and the amount of the principal due shall constitute a lien in favor of the state against all real and personal property of the organization. The lien shall be perfected by the appropriate officer of the department by executing and acknowledging a statement of the name of the organization and the amount due on the loan and a copy of the promissory note which shall be recorded by the department with the clerk of the district court in the parish where the organization is located. If the organization has filed a petition for bankruptcy, the department shall file and enforce the lien in the bankruptcy proceedings. Otherwise, the lien shall be enforced in a manner prescribed by law. All funds received by the department from the enforcement of this lien shall be deposited in the state treasury.

Added by Acts 1981, No. 770, §1. H.C.R. No. 73, 1984 R.S.