Bonds issued under this section get a statutory lien and security interest in pledged revenue-type property, with first priority and no extra filing needed to perfect it.
§504. Statutory lien A. It is the intention of the legislature that bonds issued by a governmental entity under this Part, or under any other statutory authority referenced herein, shall be secured debt entitled to the highest possible protection and priority afforded by the bankruptcy laws of the United States and this state. Therefore, the owner or owners of any such bonds are hereby granted and shall have a statutory lien on and a security interest in such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts as are pledged to the payment of such bonds, to the fullest extent and in the manner stated in this Part and in the proceedings authorizing such bonds, and any pledge or grant of a lien or security interest in such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts made by a governmental entity in connection with the issuance of bonds shall be valid, binding, and perfected from the time when the pledge or grant of lien or security interest is made. Such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts shall immediately be subject to the lien of such pledge and security interest without any physical delivery therefor or further act and the lien of such pledge and security interest shall be first priority and valid and binding as against all parties having claims of any kind in tort, contract, bankruptcy, or otherwise against the governmental entity, whether or not such parties have notice thereof. The owner or owners of bonds shall be secured creditors with respect to such taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts, as the case may be. B. Any bond issued under this Part or any other statutory authority referenced herein may contain a recital that refers to the statutory lien created by this Section and describes the taxes, income, revenues, net revenues, monies, payments, receipts, agreements, contract rights, funds, or accounts to which such statutory lien applies; however, the failure to include the aforesaid recital shall not affect the validity or efficacy of the statutory lien granted by this Section and by the proceeds authorizing such bonds. C. No notice, filing, or other proceedings under Chapter 9 of the Louisiana Commercial Laws, R.S. 10:9-101 et seq., or any other provision of law for the perfection or priority of such pledge and security interest shall be necessary to perfect the statutory lien granted by this Section and by the proceedings authorizing such bonds. D. The statutory lien shall also apply to and secure any administrative fees owed to the Clean Water State Revolving Fund or the Drinking Water Revolving Loan Fund, in connection with bonds that evidence an obligation to repay a loan from one of said revolving funds. Acts 2018, No. 569, §1, eff. July 1, 2018.