Therese owns a home in Mandeville as her separate property, which she purchased before her marriage to Henri. She later grants Henri a usufruct over the property during his lifetime. Henri now wants to use the property as collateral for a personal business loan. Under Louisiana Civil Code principles governing usufruct and immovable property, which of the following is most accurate?
Correct Answer
B) Henri may mortgage only his usufruct interest, not the naked ownership of the property
Under Louisiana Civil Code Art. 603, a usufructuary may mortgage the usufruct itself — that is, the usufructuary's right to use and enjoy the property. However, the usufructuary cannot mortgage the naked ownership, which remains with Therese. A mortgage on the usufruct interest would only encumber Henri's right to use and enjoy the property during his lifetime; it would not create a lien on the underlying immovable property itself. Upon Henri's death, the usufruct terminates and the full ownership consolidates with Therese (or her heirs), free of any mortgage Henri placed on his usufruct interest.
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