§1221. Security for deposits; kinds
A. Local depositing authorities shall require as security for deposits:
(1)Bonds or other interest-bearing securities of the United States, or any agency
thereof, including but not limited to the Federal National Mortgage Association, or bonds or
other interest-bearing obligations guaranteed fully or partially as to principal and interest by
the United States, or by any agency thereof; or bonds of any possession of the United States;
or unmatured bonds of this state, including both direct and indirect obligations and also,
including bonds or other interest-bearing obligations, whether supported by revenue or by
the avails of taxes, of the state of Louisiana or of any agency, board, commission, department
or division thereof or of any agency, public corp
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§1221. Security for deposits; kinds
A. Local depositing authorities shall require as security for deposits:
(1) Bonds or other interest-bearing securities of the United States, or any agency
thereof, including but not limited to the Federal National Mortgage Association, or bonds or
other interest-bearing obligations guaranteed fully or partially as to principal and interest by
the United States, or by any agency thereof; or bonds of any possession of the United States;
or unmatured bonds of this state, including both direct and indirect obligations and also,
including bonds or other interest-bearing obligations, whether supported by revenue or by
the avails of taxes, of the state of Louisiana or of any agency, board, commission, department
or division thereof or of any agency, public corporation or authority created by or recognized
by the state of Louisiana; or unmatured bonds of any parish, municipality, levee board, road
district, school board or school district of this state; or bonds of any parish, municipality,
industrial district or industrial board which are secured by a lease executed in accordance
with the provisions of R.S. 39:551.1, 551.2, 991, 992, or 1011 et seq. or R.S. 51:1151 et
seq., as amended, and partially or fully guaranteed by the Louisiana Board of Commerce and
Industry in accordance with the provisions of the Bond Lease Guarantee Act of the 1968
Regular Session of the Legislature.
(2) Certificates of indebtedness, including paving certificates, of any subdivision of
this state referred to in Paragraph (1) of this Subsection.
(3) Promissory notes either of the authority letting the deposits or of any other
authority referred to in Paragraph (1) of this Subsection, which notes must be either
unmatured or payable on demand.
(4) Evidence of participation in such promissory notes issued by any bank, trust
company, or recognized bank clearing house association domiciled in this state.
(5) Notes representing loans to students which are guaranteed by the Board of
Regents in accordance with a contract agreement between the lender and the board under the
provisions of R.S. 17:3021 et seq.
(6) Deposit guaranty bonds underwritten and guaranteed by an insurance company,
licensed to do business in this state, listed as an approved surety by the United States
Department of the Treasury, or private deposit insurance underwritten and issued by an
insurer licensed to do business in this state, and approved for these purposes by the Interim
Emergency Board, that provide coverage for deposits of depositing authorities in excess of
the amounts insured by the Federal Deposit Insurance Corporation or any other governmental
agency insuring bank or other financial institution deposits that is organized under the laws
of the United States, and the form and content of which are approved in advance by the state
treasurer.
(7) Notwithstanding any other law to the contrary, any obligation, security, or
investment that a political subdivision of the state may invest in directly as provided in R.S.
33:2955, except as provided in Subsection B of this Section.
(8) Letters of credit issued by the Federal Home Loan Bank as authorized by R.S.
6:318 or 748.1.
(9) Any recognized system or program providing Federal Deposit Insurance
Corporation insurance coverage as authorized by R.S. 6:319.
(10) Bonds, debentures, notes, or other indebtedness issued by a state of the United
States of America other than Louisiana or any such state's political subdivisions provided that
the indebtedness has a long-term rating of A3 or higher by Moody's Investors Service, a long-term rating of A- or higher by Standard & Poor's or a long-term rating of A- or higher by
Fitch Ratings, Inc., or a short-term rating of M1G1 or VM1G1 by Moody's Investors Service,
a short-term rating of A-1 or A-1+ by Standard & Poor's, or a short-term rating of F1 or F1+
by Fitch Ratings, Inc.
(11) Bonds, debentures, notes, or other indebtedness issued by domestic United
States corporations provided that the indebtedness has a long-term rating of Aa3 or higher
by Moody's Investors Service, a long-term rating of AA- or higher by Standard & Poor's, or
a long-term rating of AA- or higher by Fitch Ratings, Inc.
B. Notwithstanding any other law to the contrary, there shall be no limitation or
restriction on the duration of the bonds, debentures, notes, or other indebtedness used as
security for deposits under this Section.