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            A. State depositing authorities shall require as security for deposits of state funds either:

            (1) Bonds or other interest-bearing securities of the United States, or of 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 bonds of the state of Louisiana, both direct and indirect obligations, 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 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 Article 14, Section 14, Paragraphs b.2 or b.3 of the Constitution of Louisiana of 1921 or La. Rev. Stat. 39:1001 et seq. or La. Rev. Stat. 51:1151 et seq., as amended, and partially or fully guaranteed by the Board of Commerce and Industry in accordance with the provisions of the Bond Lease Guarantee Act of the Regular Session of the Louisiana Legislature of 1968.

            (2) Promissory notes, warrants, or certificates of indebtedness, either of the authority letting such deposits or of any other authority referred to in this Section, which notes, warrants or certificates of indebtedness must be either unmatured or payable on demand.

            (3) Notes representing loans to students, who meet the requirements provided in La. Rev. Stat. 17:3026(A)(1)(a) and (b) or who are attending or have attended any public college or university in the state of Louisiana or any regionally accredited independent institution of higher education that is a member of the Louisiana Association of Independent Colleges and Universities, which are guaranteed by the Louisiana Higher Education Assistance Commission in accordance with a contract agreement between the lender and the commission under the provisions of La. Rev. Stat. 17:3021 et seq. or under Title IV of the Higher Education Act of 1965 (20 U.S.C. § 1071 et seq.) as amended, or under the “Health Education Assistance Loan Program” authorized under the Public Health Service Act. Any notes representing loans to students which are accepted as collateral must be valued at an amount not to exceed seventy-five percent of the face amount of the outstanding balance of the qualifying notes in repayment as determined by the Louisiana Higher Education Assistance Commission.

            (4) 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 this purpose 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.

            (5) Notwithstanding any other provision of law to the contrary, any obligation, security, or investment that the state may invest in directly as provided in La. Rev. Stat. 49:327.

            (6) 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. The indebtedness shall have 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, a long-term rating of A- or higher by Fitch, Inc., 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, Inc.

            (7) Bonds, debentures, notes, or other indebtedness issued by domestic United States corporations. The indebtedness shall have 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. Bonds or other securities in default, either in principal or in interest, shall not be accepted or held by any of the depositing authorities named in this Chapter.

            C. The market value, excluding accrued interest, of the securities or the deposit guaranty bonds held by any depositing authority shall be equal to one hundred percent of the amount on deposit to the credit of the depositing authority except that portion of the deposits insured by any governmental agency insuring bank deposits which is organized under the laws of the United States; provided that in the case of bonds or other interest-bearing obligations guaranteed as to principal and interest by the United States, or an agency thereof, 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.

            D.(1) The state treasurer, with regard to funds on deposit in the state treasury, and other state agencies, with regard to funds not on deposit in the state treasury, may grant any designated depository a period not exceeding five days from date of any deposit in which to post the security or the deposit guaranty bonds required under Subsection C of this Section. The financial soundness of the designated depository may be considered by the state treasurer and other state agencies making deposits therein in determining the time period granted pursuant to this Subsection. The amount of collateral or of deposit guaranty bonds used to secure the deposit of public funds may be based on the collected portion of funds on deposit in the depository. State agencies depositing funds in accounts other than the central depository account or its regional account shall be required to ensure that the provisions of this Section are met by the depository.

            (2) “State agencies”, as used in this Subsection, shall mean other elected state officials, or any department, board, commission, or institution of the state.

            E. All banks selected as fiscal agents or depositories for the deposit of funds belonging to the state, or any department, board, commission or institution thereof, shall pay at par and receive on deposit at par all checks and drafts drawn by or in favor of the state or any department, board, commission, or institution, upon whatsoever point these checks and drafts may be drawn all as part of the consideration for receiving deposits of state funds.

            F. No bank selected as fiscal agent or depository for the deposit of funds belonging to the state, or any department, board, commission, or institution thereof, shall charge a state depositing authority, as that term is defined in La. Rev. Stat. 49:319, or a local depositing authority, as that term is defined in La. Rev. Stat. 39:1211, a fee for credit inquiries, deposit verifications and audit confirmations concerning accounts of the depositing authority.

            G. Notwithstanding any provision of law to the contrary, there shall be no duration limitation or restriction on the bonds used as security for deposits of state funds pursuant to the provisions of this Section.

            Acts 1976, No. 428, §1, eff. July 31, 1976; Acts 1986, No. 373, §3; Acts 1986, No. 220, §2; Acts 1987, No. 676, §1; Acts 1988, No. 946, §1; Acts 1990, No. 801, §1; Acts 1992, No. 1042, §1; Acts 1995, No. 1127, §2; Acts 2001, No. 752, §2; Acts 2020, No. 195, §1; Acts 2023, No. 81, §3, eff. July 1, 2023.