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 575 Engrossed 2020 Regular Session Thompson
Abstract: Expands the types of instruments that may be required as collateral for deposit of state
funds into a depository or fiscal agent bank.
Present law requires state depositing authorities to require security for deposits of state funds into
fiscal agent banks. Defines "state depositing authority" as the state treasurer, any other elected state
official, or any department, board, commission or institution of the state. Defines "fiscal agent bank"
as any bank selected and designated by the Interim Emergency Board for deposit of state funds by
the treasurer and other elected state officials or any department, board, commission, or institution
of the state. Proposed law retains present law.
Proposed law expands the types of collateral that a state depositing authority may accept from a
fiscal agent bank to include:
(1)Any obligation, security, or investment that the state may invest in directly under present law
(R.S. 49:327).
(2)State bonds, debentures, notes or other indebtedness of a certain minimum credit rating
issued by a state other than La. or such other state's political subdivisions.
(3)Bonds, debentures, notes, or other indebtedness of a certain minimum credit rating issued by
domestic U.S. corporations.
Proposed law further provides that notwithstanding any provision of law to the contrary, there shall
be no duration limitation or restriction on the bonds used as security pursuant to present and
proposed law.
(Adds R.S. 49:321(A)(5)-(7) and (G))