LA SB77

Amends Louisiana Civil Code Articles 2674, 2681, 2711, 2712, and 2713 to clarify rules governing leases of movable (personal) property and their effects against third parties

Establishes that a lease of a corporeal movable has effect against third persons upon actual delivery to a good-faith lessee, and this effect ceases when the property is returned to the lessor

Creates new protections for good-faith lessees when a merchant who possesses movable property with the owner's consent leases it for fair value in the regular course of business

Clarifies that both lessors and lessees have the right to assign or encumber their lease rights unless expressly prohibited by the contract, with strict construction rules against lessors limited to immovable property leases only

Confirms that sublessees or assignees acquire no greater rights than the original lessee to use and enjoyment of the leased property, effective August 1, 2026