HLS 19RS-630 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 159
BY REPRESENTATIVE BERTHELOT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
BANKS/BANKING: Provides relative to the forms of security banks may use to secure
funds deposited by local governments
1 AN ACT
2To enact R.S. 39:1221(7), (8), and (9) and 1242(A)(4), (5), and (6), relative to security for
3 bank deposits made by local government; to provide relative to authorized securities;
4 and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 39:1221(7), (8), and (9) and 1242(A)(4), (5), and (6) are hereby
7enacted to read as follows:
8 §1221. Security for deposits; kinds
9 Local depositing authorities shall require as security for deposits:
10 * * *
11 (7) Notwithstanding any other law to the contrary, any obligation, security,
12 or investment that a political subdivision of the state may invest in directly as
13 provided in R.S. 33:2955.
14 (8) Letters of credit issued by the Federal Home Loan Bank as authorized by
15 R.S. 6:318 or 748.1.
16 (9) Any recognized system or program providing Federal Deposit Insurance
17 Corporation insurance coverage as authorized by R.S. 6:319.
18 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-630 ENGROSSED
HB NO. 159
1 §1242. Security for deposits
2 A. The commissioner of public finance, or the finance officer of cities
3 having a population exceeding one hundred fifty thousand, or any department, board,
4 commission, or institution thereof, shall require as security for deposits belonging
5 to and held in their custody:
6 * * *
7 (4) Notwithstanding any other law to the contrary, any obligation, security,
8 or investment that a municipality may invest in directly as provided in R.S. 33:2955.
9 (5) Letters of credit issued by the Federal Home Loan Bank as authorized by
10 R.S. 6:318 or 748.1.
11 (6) Any recognized system or program providing Federal Deposit Insurance
12 Corporation insurance coverage as authorized by R.S. 6:319.
13 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 159 Engrossed 2019 Regular Session Berthelot
Abstract: Provides relative to acceptable forms of security that a bank may provide for
deposits of local government funds.
Present law requires a bank to provide security for deposits made to the bank by a political
subdivision of the state. Specifies acceptable securities.
Proposed law authorizes the following additional forms of security for such deposits:
(1)Any obligation, security, or investment that a local government may invest in
directly.
(2)Letters of credit issued by the Federal Home Loan Bank.
(3)Any recognized system or program providing Federal Depositors Insurance
Corporation insurance coverage.
(Adds R.S. 39:1221(7), (8), and (9) and 1242(A)(4), (5), and (6))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.