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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, 2014 ENROLLED
SENATE BILL NO. 442
BY SENATOR MARTINY
AN ACT1
To amend and reenact R.S. 33:2955(A)(1)(j)(iii) and (k)(ii) and to enact R.S. 33:29552
(A)(1)(l), relative to investments by political subdivisions; to provide for bonds,3
debentures, notes, or other evidence of indebtedness; to provide for a time period;4
to provide for an effective date; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 33:2955(A)(1)(j)(iii) and (k)(ii) are hereby amended and reenacted7
and R.S. 33:2955(A)(1)(l) is hereby enacted to read as follows:8
ยง2955. Investments by political subdivisions9
A.(1) All municipalities, parishes, school boards, and any other political10
subdivisions of the state are hereby authorized and directed to invest such monies in11
any general fund or special fund of the political subdivision, and any other funds12
under the control of the political subdivision which they, in their discretion, may13
determine to be available for investment in any of the following obligations:14
* * *15
(j) Bonds, debentures, notes, or other evidence of indebtedness issued by the16
state of Louisiana or any of its political subdivisions provided that all of the17
following conditions are met:18
* * *19
(iii) The indebtedness has a final maturity, mandatory tender, or a continuing20
optional tender of no more than three five years, except that such three five-year21
limitation shall not apply to either of the following:22
(aa) funds Funds held by a trustee, escrow agent, paying agent, or other third23
party custodian in connection with a bond issue or.24
(bb) investment Investment of funds held by either a hospital service district,25
a governmental 501(c)(3), or a public trust authority.26
(k) Bonds, debentures, notes, or other indebtedness issued by a state of the27
ACT No. 465 SB NO. 442 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
United States of America other than Louisiana or any such state's political1
subdivisions provided that all of the following conditions are met:2
* * *3
(ii) The indebtedness has a final maturity, mandatory tender, or a continuing4
optional tender of no more than three five years, except that such three five-year5
limitation shall not apply to funds held by a trustee, escrow agent, paying agent, or6
other third-party custodian in connection with a bond issue nor to investment of7
funds held by either a hospital service district, a governmental 501(c)(3)8
organization, or a public trust authority.9
* * *10
(l) Bonds, debentures, notes, or other indebtedness issued by domestic11
United States corporations provided that all of the following conditions are met:12
(i) The indebtedness shall have a long-term rating of Aa3 or higher by13
Moody's Investors Service, a long-term rating of AA- or higher by Standard &14
Poor's, or a long-term rating of AA- or higher by Fitch Ratings, Inc.15
(ii) The indebtedness has a final maturity, mandatory tender, or a16
continuing optional tender of no more than five years.17
(iii) Prior to purchase of any such indebtedness and at all times during18
which such indebtedness is owned, the purchasing Louisiana political19
subdivision retains the services of an investment advisor registered with the20
United States Securities and Exchange Commission.21
* * *22
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: