SLS 15RS-412 ORIGINAL
2015 Regular Session
SENATE BILL NO. 64
BY SENATOR MARTINY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
BANKS/BANKING. Provides relative to the sale and purchase of excess reserves by banks.
(8/1/15)
1 AN ACT
2 To amend and reenact R.S. 6:303(A), relative to banks and banking; to provide for the sale
3 of excess reserves; to provide certain terms and conditions; and to provide for related
4 matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 6:303(A) is hereby amended and reenacted to read as follows:
7 ยง303. Sale and purchase of excess reserves; reports
8 A.(1) A state bank may sell any of its excess reserves to any other bank or
9 banks in an amount to each bank that is equal to twice the sum of the capital stock
10 and the surplus of the vendor bank.
11 (2) Notwithstanding any other provision of law to the contrary, a state
12 bank may sell any of its excess reserves without limitation as to amount, to any
13 other bank acting as agent, so long as the amount of cash reserves held by each
14 individual bank acting as principal does not exceed the amount provided in
15 Paragraph (1) of this Subsection.
16 (3) The provisions of this Subsection shall not apply to the sale of excess
17 reserves to the Federal Reserve Bank or any Federal Home Loan Bank.
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 64
SLS 15RS-412 ORIGINAL
1 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ridge.
DIGEST
SB 64 Original 2015 Regular Session Martiny
Present law provides that a state bank may sell any of its excess reserves to any other bank
or banks in an amount to each bank that is equal to twice the sum of the capital stock and the
surplus of the vendor bank.
Proposed law retains present law and provides that notwithstanding any other provision of
law to the contrary, a state bank may sell any of its excess reserves without limitation as to
amount, to any other bank acting as agent, so long as the amount of cash reserves held by
each individual bank acting as principal does not exceed the amount provided in present law.
Proposed law provides that the limit on the amount of excess reserves a bank can sell to any
other bank provided in present law shall not apply to the sale of excess reserves to the
Federal Reserve Bank or any Federal Home Loan Bank.
Effective August 1, 2015.
(Amends R.S. 6:303(A))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.