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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. 88
BY SENATOR MORRELL
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 by10
any depositing authority shall at all times be equal to one hundred percent of the11
amount on deposit to the credit of the depositing authority except that portion of12
the 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
executed in accordance with the provisions of Article XIV, Sections 14(b.2) and18
14(b.3) of the Constitution of 1921 or R.S. 39:1001 et seq. or R.S. 51:1151 et seq.,19
as amended, and partially or fully guaranteed by the Louisiana Board of Commerce20
and Industry in accordance with the provisions of the Bond Lease Guarantee Act*21
of the 1968 Regular Session of the Louisiana Legislature, the market value of said22
bonds or obligations, excluding accrued interest, shall not be deemed to exceed an23
amount in excess of the principal so guaranteed. The market value of the securities24
used to secure deposits as provided herein may be calculated on the basis of the25
quarterly reports of financial conditions submitted by the fiscal agent bank to the26
office of financial institutions, Federal Deposit Insurance Corporation, or Office of27 SB NO. 88 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the Comptroller of the Currency using the valuations derived from any national1
securities index, register, or publication, or in any other reasonable manner2
acceptable to the depositing authority.3
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PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: