39:1223      Security for deposits; value of securities

 Any bonds and certificates of indebtedness, including paving certificates, of any authority referred to in R.S. 39:1221(1), whose revenue in whole or in part is not derived from ad valorem taxes, and any paving certificates of any authority referred to in R.S. 39:1221(1), which are not secured by an unlimited ad valorem tax, and all other eligible bonds, certificates of indebtedness, paving certificates, promissory notes, evidence of participation in promissory notes and other interest-bearing securities or obligations shall be accepted as security at their market value excluding accrued interest; provided that in the case of bonds or other interest-bearing obligations guaranteed as to principal and interest by the United States or any agency thereof, or bonds of any parish, municipality, industrial district or industrial board which are secured by a lease executed in accordance with the provisions of Article XIV, Sections 14(b.2) and 14(b.3) of the Constitution of 1921 [FN1] or R.S. 39:1001 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 Louisiana Legislature, [FN2] the market value of said bonds or obligations, excluding accrued interest, shall not be deemed to exceed an amount in excess of the principal so guaranteed. The market value of the securities used to secure deposits as provided herein may be calculated on the basis of the quarterly reports of financial conditions submitted by the fiscal agent bank to the office of financial institutions, Federal Deposit Insurance Corporation, or Office of the Comptroller of the Currency using the valuations derived from any national securities index, register, or publication, or in any other reasonable manner acceptable to the depositing authority.

Amended by Acts 1968, No. 287, § 1; Acts 1986, No. 373, § 1.

[FN1] See, now, R.S. 39:471, 39:551.1, 39:551.2, 39:570.1, 39:991, and 39:992.

[FN2] See Acts 1968, No. 697 which contained a proposed amendment to the 1921 Louisiana Constitution, an addition to Art. 14, § 14 of a par. (b.4) authorizing the Board of Commerce and Industry to insure portions of lease payments under terms of lease agreements securing and related to certain bonds issued by political subdivisions. Pursuant to the provisions of Act 697, the proposed amendment was submitted to the voters at a general election held in 1968. It failed to pass.