Answer

Yes. Except for demand deposits, it is required that all funds of public entities be placed in interest bearing accounts. R.S. 39:1217.1 "Demand Deposits" are those transactional accounts generally meant neither for the purpose of earning interest nor for the purpose of savings, but for convenience of the client; hence they tend not to bear interest. Instead, a customer can deposit or withdraw any amount of money any number of times, subject to availability of funds. Commonly referred to as a checking account. Additionally, R.S. 39:1224 provides that “The bonds, certificates of indebtedness, paving certificates, promissory notes, evidence of participation in promissory notes, and other interest-bearing securities or obligations furnished as security, shall be deposited with the depositing authority or with an unaffiliated bank or trust company or federal reserve bank or any Federal Home Loan Bank or its successor; ...". Louisiana Legislative Auditor website: 08/02/2025 01:33:46 AM