Katrina Jackson (HB 114) Act No. 32
Existing law (R.S. 6:124.1) provides that financial institutions are obligated to demonstrate
that their deposit facilities serve the needs and convenience of the communities where they
are chartered to do business. Existing law further provides that regulated financial
institutions have a continuing obligation to help meet the credit needs of the communities
where they are chartered. The federal Community Reinvestment Act of 1977 requires that
each financial institution receive an annual rating indicating the degree to which the
institution has met such community credit needs.
New law repeals prior law requirement that a financial institution may not receive public
funds for deposit if it had received two consecutive less than satisfactory ratings under the
federal Community Reinvestment Act of 1977.
Existing law (R.S. 39:1220(A)(4)) provides that local depositing authorities shall select
financial institutions as the depository for their funds that are domiciled or have branches in
the parish, municipality, or congressional district, along with other specific conditions.
New law repeals prior law requirement that the financial institution may not receive public
funds for deposit if it had received two consecutive less than satisfactory ratings under the
federal Community Reinvestment Act of 1977.
Existing law (R.S. 49:317) provides that the Interim Emergency Board shall designate as
state depositories such financial institutions doing business in the state as advisable after
considering recommendations from the treasurer.
New law repeals prior law requirement that the financial institution may not receive public
funds for deposit if it had received two consecutive less than satisfactory ratings under the
federal Community Reinvestment Act of 1977.
Effective August 1, 2013.
(Amends R.S. 49:317; Repeals R.S. 6:124.1(C) and R.S. 39:1220(A)(4))