§ 33:2929 — Security required; no charge for cashing checks and drafts

A. The depositing authority requires as security for deposits belonging to and held in its custody:
(1) Bonds of the United States of America or any colonial possession thereof; or bonds of the State of Louisiana or bonds of the municipality in which the fiscal agent banks are located, or bonds of the levee board or school board in which the fiscal agent banks are located, or bonds of the board of commissioners of the Port of New Orleans, or
(2) Promissory notes, warrants, or certificates of indebtedness, of the depositing authority letting such deposits or any other depositing authority referred to in R.S. 33:2928, which notes, warrants, or certificates of indebtedness must be either unmatured or payable on demand.
B. Bonds or other securities in default, either in principal or interest, shall not be accepted or held by any of the depositing authorities.
C. The par value of the securities held by any depositing authority shall at all times be equal to one hundred per cent of the amount on deposit to the credit of the depositing authority.
D. No funds in excess of the capital stock and declared surplus of any bank shall be deposited in any depository. A depositing authority may grant any designated depository a period not exceeding ten days from date of any deposit in which to post the security required under paragraph C of this Section.
E. All banks selected as fiscal agents or depositories for the deposit of funds belonging to cities having a population exceeding one hundred fifty thousand or any department, board, commission, or institution thereof, shall cash without charge and receive on deposit at par all checks and drafts drawn by them or in their favor.