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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010 ENROLLED
SENATE BILL NO. 306
BY SENATOR MARTINY
AN ACT1
To enact R.S. 33:2955(A)(1)(k), relative to investments by political subdivisions; to provide2
for investment in debt instruments issued by any state other than Louisiana; to3
provide for investment in debt instruments issued by political subdivisions of any4
state other than Louisiana; to provide restrictions on such types of investments; to5
provide requirements relative to political subdivisions purchasing such debt6
instruments; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 33:2955(A)(1)(k) is hereby enacted to read as follows: 9
ยง2955. Investments by political subdivisions10
A.(1) All municipalities, parishes, school boards, and any other political11
subdivisions of the state are hereby authorized and directed to invest such monies in12
any general fund or special fund of the political subdivision, and any other funds13
under the control of the political subdivision which they, in their discretion, may14
determine to be available for investment in any of the following obligations:15
* * *16
(k) Bonds, debentures, notes, or other indebtedness issued by a state of17
the United States of America other than Louisiana or any such state's political18
subdivisions provided that all of the following conditions are met:19
(i) The indebtedness has a minimum rating of A3 or higher by Moody's20
Investors Service or a rating of A- or higher by the Standard and Poor21
Corporation or a rating of A- or higher by Fitch, Inc.22
(ii) The indebtedness has a final maturity of no more than three years,23
except that such three-year limitation shall not apply to funds held by a trustee,24
escrow agent, paying agent, or other third-party custodian in connection with25
a bond issue nor to investment of funds held by either a hospital service district,26
a governmental 501(c)(3) organization, or a public trust authority.27
ACT No. 642 SB NO. 306 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(iii) Prior to purchase of any such indebtedness and at all times during1
which such indebtedness is owned, the purchasing Louisiana political2
subdivision retains the services of an investment advisor registered with the3
United States Securities and Exchange Commission.4
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PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: