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Terms Used In Louisiana Revised Statutes 51:3107

  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC

A.  A local government may deposit public funds with a financial institution designated as a banking district depository.

B.  Subject to an agreement between the governing body and the banking district depository, public funds deposited in the banking district depository may earn a fixed interest rate that is at or below the financial institution’s posted two year certificate of deposit rate.  The terms of the agreement must be specified in the resolution adopted under La. Rev. Stat. 51:3106.

Acts 2007, No. 255, §1.