Act 169 Cancellations

Act 169 cancellations refer to a set of procedures outlined in Louisiana law for the cancellation of certain types of obligations, such as mortgages, leases, and other contracts. The process is governed by Louisiana Revised Statutes (R.S.) 44:106-109 and Civil Code (CC) 3366.

Change in the law effective July 1, 2006:

ALL CANCELLATIONS MUST BE MADE BY REQUEST FOR CANCELLATION. (CC 3366)

SEE CANCELLATION FORM GUIDELINES BELOW FOR MORE INFORMATION AND FORMS.

Cancellation Steps

A. No Paraphed Obligation (R.S. 9:5169)
1. Request for cancellation. (Form RFC 1) (and)
2. An act executed before a notary public, signed by Obligee of Record (Form RFC 2) that acknowledges satisfaction and directs the clerk to cancel its recordation.

B. Paraphed Obligations (R.S. 9:5170A) (1)

1. Request for Cancellation. (Form RFC 1) (and)
2. Paraphed Note marked "paid" or "cancelled." (or)

C. Cancellation by Certificates of Public Officer (R.S. 9:5171)

1. Request for Cancellation. (Form RFC 1) (and)
2. Certified Copy or Order or other document evidencing the extinction.

D. Cancellation by Licensed Financial Institution (R.S. 9:5172)

1. Financial Institution may comply with R.S. 9:5169-5171 or
2. An Act, of a licensed financial institution executed before a notary public, declaring the following: (Form RFC 3)

a. Institution was the obligee or authorized agent at the time the obligation was extinguished. (or)
b. Institution is the obligee or authorized agent of the obligee. (and)
c. That the obligation has been paid or otherwise satisfied or extinguished and directs the recorder to cancel its recordation.

NOTE: A financial institution, in lieu of filing a separate "request for cancellation" may combine it in one form.

NOTE: A licensed financial institution is any person licensed or regulated by La. Office of Financial Institutions, or any bank, credit union, lending agency, or other person conducting such a business that is licensed or regulated by another state or U.S.

E. Cancellation of Prescribed Mortgage or Privilege (CC367)

1. Request for Cancellation. (Form RFC 1) (and)
2. Signed application for cancellation.

F. Cancellation of Prescribed Judicial Mortgage (CC3368)

1. Request for Cancellation. (Form RFC 1) (and)
2. Signed Application for cancellation
3. Certificate from Clerk of Court (Suit Department) that no suit or motion has been filed for revival of judgement or certified copy of judgement rejecting the demands to revive the judgement.

G. Cancellation by Affidavit of Notary Where Paraphed Note or Other Evidence Is Lost or Destroyed (R.S. 9:5167A)

1. Request for Cancellation. (Form RFC 1) (and)
2. Affidavit that states:

a. Name of mortgagor or obligor of the privilege as it appears in the recorded mortgage or vendor’s privilege and recordation information.
b. Description of the paraphed note and property.
c. That the affiant or someone under his direction did satisfy the note.
d. That the affiant or someone under his direction:

Did receive the note marked “Paid in Full” from the last holder of the note, and that the note was lost or destroyed while in the affiant’s custody.

Has confirmed that the last holder of the note received payment in full and sent the note and the note was never received.

e. That the affiant agrees to be personally liable and to indemnify the recorder of mortgages and any person relying upon the cancellation by affidavit for any damages that they may suffer as a consequence of such reliance if the recorded affidavit contains materially false or incorrect statements that cause the recorder to incorrectly cancel the recordation of a mortgage or privilege.
f. A statement that the affiant has made a due and diligent search for the note, the note cannot be located and sixty days have elapsed since payment or satisfaction of the note.

H. Cancellation by Affidavit of Title Insurer Where Paraphed Note or Other Evidence is Lost or Destroyed (R.S. 9:5167B)

1. Request for Cancellation. (Form RFC 1) (and)
2. Affidavit of an officer of a licensed title insurer that states:

a. Description of the instrument that was lost or destroyed and an affirmative statement that the instrument has been lost or destroyed.
b. Name of mortgagor or obligor of the privilege as it appears in the recorded mortgage or vendor’s privilege and recordation information.
c. A statement that all obligations secured by the mortgage or vendor’s privilege have been satisfied.
d. A declaration that the title insurer agrees to be liable and to indemnify the recorder of mortgages and any person relying upon the cancellation by affidavit for any damages that they may suffer as a consequence of such reliance if the recorded affidavit contains materially false or incorrect statements that cause the recorder to incorrectly cancel the recordation of a mortgage or privilege.
e. A statement that the affiant has made a due and diligent search for the lost or destroyed instrument, the lost or destroyed instrument cannot be located, and sixty days have elapsed since payment or satisfaction of the secured obligation.