The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Michael Bell.
DIGEST
Martiny (SB 442)
Present law provides that bonds, debentures, notes, or other evidence of indebtedness issued by
the state of Louisiana or any of its political subdivisions has a final maturity, mandatory tender,
or a continuing optional tender of no more than three years, except that such three-year limitation
shall not apply to funds held by a trustee, escrow agent, paying agent, or other third party
custodian in connection with a bond issue or investment of funds held by either a hospital service
district, a governmental 501(c)(3), or a public trust authority.
Proposed law retains present law and changes the final maturity, mandatory tender, or a
continuing optional tender from three years to five years for bonds, debentures, notes, or other
evidence of indebtedness issued by the state of Louisiana or any of its political subdivisions.
Present law provides that bonds, debentures, notes, or other indebtedness issued by a state of the
United States of America other than Louisiana or any such state's political subdivisions has a
final maturity, mandatory tender, or a continuing optional tender of no more than three years,
except that such three-year limitation shall not apply to funds held by a trustee, escrow agent,
paying agent, or other third party custodian in connection with a bond issue or investment of
funds held by either a hospital service district, a governmental 501(c)(3), or a public trust
authority.
Proposed law retains present law and changes the final maturity, mandatory tender, or a
continuing optional tender from three years to five years for bonds, debentures, notes, or other
indebtedness issued by a state of the United States of America other than Louisiana or any such
state's political subdivisions.
Proposed law provides that bonds, debentures, notes, or other evidence of indebtedness issued by
domestic United States corporations shall have a long-term rating of Aa3 or higher by Moody's
Investors Service, a long-term rating of AA- or higher by Standard & Poor's or a long-term rating
of AA- or higher by Fitch, Inc. and that the indebtedness has a final maturity, mandatory tender,
or a continuing optional tender of no more than five years.
Proposed law requires that prior to purchase of any such indebtedness and at all times during
which such indebtedness is owned, the purchasing Louisiana political subdivision retains the
services of an investment advisor registered with the United States Securities and Exchange
Commission.
Effective August 1, 2014.
(Amends R.S. 33:2955 (A)(1)(j)(iii) and (k)(ii); adds (A)(1)(l))