§1357. Fiscal Administrator Revolving Loan Fund
A.There is hereby established a revolving fund in the state treasury to be known as
the "Fiscal Administrator and Receiver Revolving Loan Fund", hereinafter referred to as the
"fund", which shall be maintained and operated by the Department of the Treasury. The
source of monies deposited in and credited to the fund shall be all grants, gifts, and donations
received by the state for the purpose of funding fiscal administrators, limited fiscal
administrators or receivers; any money appropriated by the legislature to the fund; the
repayment of principal of and interest on loans and other obligations made to political
subdivisions or public water system financed from the fund; and other revenues as may be
provided by law.
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§1357. Fiscal Administrator Revolving Loan Fund
A. There is hereby established a revolving fund in the state treasury to be known as
the "Fiscal Administrator and Receiver Revolving Loan Fund", hereinafter referred to as the
"fund", which shall be maintained and operated by the Department of the Treasury. The
source of monies deposited in and credited to the fund shall be all grants, gifts, and donations
received by the state for the purpose of funding fiscal administrators, limited fiscal
administrators or receivers; any money appropriated by the legislature to the fund; the
repayment of principal of and interest on loans and other obligations made to political
subdivisions or public water system financed from the fund; and other revenues as may be
provided by law.
B. Money in the fund shall be invested by the state treasurer in the same manner as
money in the state general fund. Interest earned on the investment of the money in the fund
shall be credited to the fund after compliance with the requirements of Article VII, Section
9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund.
All unexpended and unencumbered money in the fund at the end of a fiscal year shall remain
in the fund.
C. Notwithstanding any provisions of law to the contrary, and in addition to the
authority to borrow money or incur debt under any other provisions of law, any political
subdivision or public water system for which a fiscal administrator, limited fiscal
administrators or receiver is in the process of being appointed or which has been appointed
as provided in this Chapter, R.S. 40:5.9, or 5.9.1, is hereby authorized to borrow money from
and incur debt payable to the fund in accordance with the provisions of this Section. Such
borrowing shall be subject to the approval of:
(1) The legislative auditor, the attorney general, and the state treasurer.
(2) The fiscal administrator, limited fiscal administrators, or receiver if one has been
appointed by the court.
(3) The district court having jurisdiction over the fiscal administration.
(4) The State Bond Commission.
D. The monies in the fund shall be appropriated and used only for the purpose of
providing financial assistance to a political subdivision or public water system for which a
court has appointed a fiscal administrator, limited fiscal administrators, or receiver as
provided in this Chapter, R.S. 40:5.9, or 5.9.1 by providing a source of funds from which the
political subdivision or public water system may borrow in order to pay the costs and
expenses associated with the independent fiscal administration or receivership of the political
subdivision or public water system, including but not limited to all costs and expenses
incurred by the fiscal administrator, limited fiscal administrators or receiver, the legislative
auditor, the attorney general, the state treasurer, and any other persons engaged in connection
with the independent fiscal administration, limited fiscal administrators or receiver.
E. Each loan shall be evidenced by a bond, note, or other evidence of indebtedness
of the borrower issued to represent an obligation to repay a loan from the fund and shall be
authorized and issued pursuant to a resolution or ordinance of the governing authority of such
entity, which shall prescribe the form and details thereof, including the terms, security for,
manner of execution, repayment schedule, and redemption features thereof. Any such
resolution or ordinance shall set forth the maximum principal amount, the maximum interest
rate, which shall be at an interest rate that is less than or equal to the market interest rate, as
determined by the Department of the Treasury, the maximum redemption premium, if any,
and the maximum term of such indebtedness.
F. All resolutions or ordinances authorizing the issuance of bonds, notes, or other
evidence of indebtedness of a political subdivision hereunder shall be published once in the
official journal of the borrower. It shall not be necessary to publish exhibits to such
resolution or ordinance, but such exhibits shall be made available for public inspection at the
offices of the governing authority of the borrower at reasonable times and such fact shall be
stated in the publication. For a period of thirty days after the date of such publication, any
persons in interest may contest the legality of the resolution or ordinance authorizing such
evidence of indebtedness and any provisions thereof made for the security and payment
thereof. After such thirty-day period, no one shall have any cause or right of action to contest
the regularity, formality, legality, or effectiveness of the resolution or ordinance and the
provisions thereof or of the bonds, notes, or other evidence of indebtedness authorized
thereby for any cause whatsoever. If no suit, action, or proceeding is begun contesting the
validity of the bonds, notes, or other evidence of indebtedness authorized pursuant to the
resolution or ordinance within the thirty days prescribed in this Subsection, the authority to
issue the bonds, notes, or other evidence of indebtedness, or to provide for the payment
thereof, and the legality thereof, and all of the provisions of the resolution or ordinance and
the evidence of indebtedness shall be conclusively presumed, and no court shall have
authority or jurisdiction to inquire into any such matter.
G. The Department of the Treasury may by suit, action, mandamus, or other
proceedings, protect and enforce any covenant relating to and the security provided in
connection with any indebtedness issued pursuant to this Section, and may by suit, action,
mandamus, or other proceedings enforce and compel performance of all of the duties
required to be performed by the governing body and officials of any borrower hereunder and
in any proceedings authorizing the issuance of such bonds or other evidences of
indebtedness.
H. Monies in, credited to the account of, or to be received by the Fiscal
Administrator and Receiver Revolving Loan Fund shall be expended in a manner consistent
with the terms and conditions of the loans made from the fund.
I. The repayment of principal of and interest on loans and other obligations made to
political subdivisions or public water systems financed from the Fiscal Administrator and
Receiver Revolving Loan Fund shall be deposited into the Fiscal Administrator and Receiver
Revolving Loan Fund and may be used to finance loans and obligations to other political
subdivisions or public water systems for which a fiscal administrator, limited fiscal
administrators or receiver is appointed pursuant to this Chapter, R.S. 40:5.9, or 5.9.1,
provided that reserves for expenditures for the administration of the fund that the Department
of the Treasury deems necessary and prudent may be retained in the fund.
J. The Department of the Treasury shall be authorized to enter into contracts and
other agreements in connection with the operation of the fund and the department is
authorized to adopt rules and regulations in accordance with the Administrative Procedure
Act to implement the provisions of this Section.
NOTE: See Acts 2019, No. 404, §8(B), regarding the repeal of R.S. 39:1357
pursuant to Acts 2018, No. 612, §22.