Art. 3140. Nullity of agreement of forfeiture

            Unless expressly permitted by law, a clause in a contract providing in advance that ownership of a thing given as security will transfer upon default in performance of the secured obligation is absolutely null.

            A clause in a contract obligating the owner of a thing to give it to an obligee in payment of a debt upon a future default in performance of an obligation is absolutely null.

            Acts 2014, No. 281, §1, eff. Jan. 1, 2015.