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 Original 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))