ENROLLED
ACT No. 195
2020 Regular Session
HOUSE BILL NO. 575
BY REPRESENTATIVE THOMPSON
1 AN ACT
2 To enact R.S. 49:321(A)(5) through (7) and (G), relative to collateral for deposits of state
3 funds; to provide relative to the types of instruments that may be required as
4 collateral; to provide relative to restrictions on certain types of instruments used as
5 collateral; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 49:321(A)(5) through (7) and (G) are hereby enacted to read as
8 follows:
9 ยง321. Security for deposit of funds; checks and drafts of departments
10 A. State depositing authorities shall require as security for deposits of state
11 funds either:
12 * * *
13 (5) Notwithstanding any other provision of law to the contrary, any
14 obligation, security, or investment that the state may invest in directly as provided
15 in R.S. 49:327.
16 (6) Bonds, debentures, notes, or other indebtedness issued by a state of the
17 United States of America other than Louisiana or any such state's political
18 subdivisions. The indebtedness shall have a long-term rating of A3 or higher by
19 Moody's Investors Service, a long-term rating of A- or higher by Standard & Poor's,
20 a long-term rating of A- or higher by Fitch, Inc., a short-term rating of M1G1 or
21 VM1G1 by Moody's Investors Service, a short-term rating of A-1 or A-1+ by
22 Standard & Poor's, or a short-term rating of F1 or F1+ by Fitch, Inc.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 575 ENROLLED
1 (7) Bonds, debentures, notes, or other indebtedness issued by domestic
2 United States corporations. The indebtedness shall have a long-term rating of Aa3
3 or higher by Moody's Investors Service, a long-term rating of AA- or higher by
4 Standard & Poor's, or a long-term rating of AA- or higher by Fitch Ratings, Inc.
5 * * *
6 G. Notwithstanding any provision of law to the contrary, there shall be no
7 duration limitation or restriction on the bonds used as security for deposits of state
8 funds pursuant to the provisions of this Section.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.