Private Money Lending in Louisiana
Louisiana has an active private lending market, particularly in New Orleans, Baton Rouge, and the Gulf Coast, with unique civil law considerations.
This guide covers the essential legal and compliance considerations for private money lenders originating loans secured by real property in Louisiana. Whether you are a local private money lender or expanding into Louisiana from another state, understanding these requirements is critical to protecting your investments and ensuring enforceability of your loan documents.
Key Compliance Considerations for Louisiana
• Louisiana follows civil law (not common law), which creates unique terminology and procedures — mortgages are called 'mortgages' but operate under different legal principles
• The Executory Process allows expedited foreclosure (60-90 days) if the mortgage includes specific clauses: confession of judgment, waiver of appraisal, and authentic act (notarized before two witnesses)
• Louisiana has no usury limit for business-purpose loans over $5,000 when the rate is agreed to in writing
• The state uses a unique 'authentic act' requirement — certain documents must be notarized before two witnesses and a notary to have full legal effect
Generate Louisiana-Compliant Loan Documents
Automate Loan Docs generates complete, Louisiana-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Louisiana lending transactions.
This guide is for informational purposes only and does not constitute legal advice. Private lending laws are complex and change frequently. Consult with a qualified attorney before originating loans in Louisiana. The attorneys at Geraci LLP are available for state-specific legal consultation.
Related: Usury Laws by State | Deed of Trust vs Mortgage | Multi-State Lending Guide | Glossary