Louisiana Revised Statutes 23:1397 – Incurring of debt for operations and cash flow; pledge of full faith and credit of state
Terms Used In Louisiana Revised Statutes 23:1397
- Board: means the board of directors of the corporation. See Louisiana Revised Statutes 23:1392
- Commission: means the Louisiana Workforce Commission. See Louisiana Revised Statutes 23:1
- 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.
- Corporation: means the Louisiana Workers' Compensation Corporation. See Louisiana Revised Statutes 23:1392
A. The corporation shall not incur capitalization debt, in the aggregate, over five million dollars unless prior approval is obtained from the State Bond Commission. However, upon the extinguishment of the full faith and credit guarantee of the state, as provided in the constitution, the board of directors of the corporation shall have the exclusive authority to approve the capitalization debt of the corporation.
B. Any proceeds from debt incurred pursuant to this Section shall be used only for the operations of the corporation and for cash flow purposes to pay any claims under policies issued by the corporation.
C. Until such time as the corporation obtains the approval of the United States Department of Labor to provide United States Longshore and Harbor Worker’s Compensation Act coverage without such security, the full faith and credit of the state of Louisiana shall be pledged for any debt incurred pursuant to this Section subject to the provisions of La. Rev. Stat. 23:1404.
Acts 1991, No. 814, §1; eff. Nov. 20, 1991; Acts 1999, No. 1256, §1, eff. July 12, 1999.