SLS 10RS-489 ENGROSSED
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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
SENATE BILL NO. 88
BY SENATOR MORRELL
BANKS/BANKING. Exempts certain deposits insured or guaranteed by a governmental
agency insuring bank deposits that is organized under federal law from security
requirements. (8/15/10)
AN ACT1
To amend and reenact R.S. 39:1242(C), relative to security for deposits; to exempt certain2
deposits insured or guaranteed by a governmental agency insuring bank deposits that3
is organized under federal law from security requirements; and to provide for related4
matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 39:1242(C) is hereby amended and reenacted to read as follows: 7
ยง1242. Security for deposits8
* * *9
C. The market value, excluding accrued interest, of the securities held by any10
depositing authority shall at all times be equal to one hundred percent of the amount11
on deposit to the credit of the depositing authority except that portion of the12
deposits insured or guaranteed by any government agency insuring bank13
deposits that is organized under the laws of the United States; provided that in14
the case of bonds or other interest-bearing obligations guaranteed as to principal and15
interest by the United States, or an agency thereof, or bonds of any parish,16
municipality, industrial district or industrial board which are secured by a lease17 SB NO. 88
SLS 10RS-489 ENGROSSED
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
executed in accordance with the provisions of Article XIV, Sections 14(b.2) and1
14(b.3) of the Constitution of 1921 or R.S. 39:1001 et seq. or R.S. 51:1151 et seq.,2
as amended, and partially or fully guaranteed by the Louisiana Board of Commerce3
and Industry in accordance with the provisions of the Bond Lease Guarantee Act*4
of the 1968 Regular Session of the Louisiana Legislature, the market value of said5
bonds or obligations, excluding accrued interest, shall not be deemed to exceed an6
amount in excess of the principal so guaranteed. The market value of the securities7
used to secure deposits as provided herein may be calculated on the basis of the8
quarterly reports of financial conditions submitted by the fiscal agent bank to the9
office of financial institutions, Federal Deposit Insurance Corporation, or Office of10
the Comptroller of the Currency using the valuations derived from any national11
securities index, register, or publication, or in any other reasonable manner12
acceptable to the depositing authority.13
* * *14
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Morrell (SB 88)
Present law requires that the market value, excluding accrued interest, of the securities held
by any depositing authority, at all times, be equal to 100% of the amount on deposit to the
credit of the depositing authority.
Proposed law retains present law, but adds an exception for the portion of deposits insured
or guaranteed by any government agency insuring bank deposits that is organized under the
laws of the United States.
Effective August 15, 2010.
(Amends R.S. 39:1242(C))