Louisiana § RS 6:418 - Pledge of assets to secure deposits; exceptions; penalty
Full text of Louisiana Louisiana Civil Code § RS 6:418 — Pledge of assets to secure deposits; exceptions; penalty, with citation guidance and answers to common questions.
§ RS 6:418. Pledge of assets to secure deposits; exceptions; penalty
A. No bank shall pledge or hypothecate any of its assets for the purpose of securing any depositor or for the purpose of furnishing an indemnity bond to secure any depositor from any loss that might be occasioned to the depositor by reason of the failure or inability of the bank to pay in full all of its depositors.
B.(1) Nothing contained in Subsection A shall impair the rights of banks to secure deposits of public entities as they may be required to be secured from time to time by other provisions of law or to secure deposits pursuant to any federal deposit insurance program.
(2) Any bank or trust company acting as tutor, curator, executor, administrator, or other fiduciary, whose trust department makes deposits with its banking department of moneys for which it is responsible as tutor, curator, executor, administrator, or other fiduciary, may secure those deposits by delivering to its trust department, as collateral security, readily marketable bonds or other obligations or assets of that institution having and maintaining a market value at least equal to the amount of those deposits.
C. Any officer or employee who violates this Section shall be fined not less than one thousand dollars nor more than five thousand dollars.
Acts 1984, No. 719, §1, eff. Jan. 1, 1985; Acts 1986, No. 6, §1.
Source: official Louisiana text · Last verified 2026-08-27
Frequently Asked Questions About Louisiana § RS 6:418
What does Louisiana Civil Code § RS 6:418 cover?
Section RS 6:418 ("Pledge of assets to secure deposits; exceptions; penalty") is part of the Louisiana Civil Code, the codified statutory law of Louisiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Louisiana § RS 6:418?
A common citation format is "Louisiana Civil Code § RS 6:418" (Louisiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Louisiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Louisiana official source linked on this page or consult a licensed Louisiana attorney.
How does Louisiana § RS 6:418 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Louisiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Louisiana.