Finance
In Louisiana, what is a 'collateral mortgage note'?
AA promissory note secured by a second property
BA mortgage instrument used in Louisiana to secure a line of credit or multiple debts, pledging the note itself as collateral✓ Correct
CA note used only for commercial properties
DA government-backed mortgage instrument
Explanation
The collateral mortgage is a uniquely Louisiana instrument consisting of a mortgage note (paraphed) secured by a mortgage, which is then pledged as collateral for a separate loan (the hand note). It allows flexible credit arrangements and reuse without re-recording.
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