Finance
In Louisiana, a 'purchase money mortgage' given to the seller at closing differs from a vendor's privilege in that:
AThey are identical legal instruments
BA purchase money mortgage is a contractual lien requiring recording; a vendor's privilege arises automatically by law in a Credit Sale for the unpaid price without requiring a separate recorded mortgage instrument✓ Correct
CA vendor's privilege requires a separate note
DOnly the purchase money mortgage can be foreclosed
Explanation
A vendor's privilege (seller's lien) arises automatically by law in a Louisiana Credit Sale for the unpaid balance of the purchase price — it is a legal lien. A purchase money mortgage is a conventional mortgage securing a seller-financed obligation, requiring recording as a mortgage instrument.
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