La. Rev. Stat. § 9:2095
Bank deposits
Louisiana · Louisiana Revised Statutes Title 9 — Civil Code-Ancillaries · Status: effective
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- Citation
- La. Rev. Stat. § 9:2095, Bank deposits, Louisiana, version 1 as recorded 2026-10-04, yourstate.us, https://yourstate.us/provision/2646514
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Full text
Although a trustee can properly make a general deposit of trust money in a bank, he shall use reasonable care in selecting the bank and properly earmark the deposit as a deposit of trust funds by him as trustee, unless the trust instrument provides otherwise.
A corporate trustee making a general deposit of trust money with an affiliate or its own banking department has a duty to a beneficiary to obtain as security for the deposit readily marketable bonds or other obligations having and maintaining a market value at least equal to the amount of the deposit, unless dispensed from doing so by specific words in the trust instrument, but such a dispensation shall not be construed as preventing a corporate trustee from putting up security for a deposit of trust money if it desires to do so. No security shall be required for any deposit up to the amount insured by the Federal Deposit Insurance Corporation.