Louisiana Revised Statutes 6:748.1 – Public funds deposits; additional collateral
Terms Used In Louisiana Revised Statutes 6:748.1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Stock: means capital stock of a capital stock association. See Louisiana Revised Statutes 6:703
A. In addition to other collateral for public funds deposits authorized by law, including but not limited to La. Rev. Stat. 33:2929, La. Rev. Stat. 39:1221, La. Rev. Stat. 39:1242, and La. Rev. Stat. 49:321, savings and loan associations and savings banks, whether chartered on a mutual or stock basis, are hereby authorized and empowered to use as collateral for said funds mortgage pass-through certificates issued by the Federal Home Loan Mortgage Corporation and letters of credit issued by the Federal Home Loan Bank.
B. Notwithstanding any other provisions of the law to the contrary, savings and loan associations and savings banks are specifically designated as depositories for the purpose of holding collateral of other financial institutions when this collateral is security for public funds deposits in excess of the insured limit of the Federal Deposit Insurance Corporation.
C. The Federal Home Loan Bank of the Ninth District or its successor shall be authorized as a depository of collateral for public funds forming the basis for the issuance of the letter of credit offered by the Federal Home Loan Bank.
Acts 1986, No. 99, §1, eff. June 23, 1986.