Answer

The Attorney General has opined that pursuant to R.S. 6:319, public bodies may utilize the Certificate of Deposit Account Registry Service (CDARS) with certain restrictions regarding the deposit of state funds. See AG Op. No. 09-0073 and AG Op. No. 09-0073A. In those opinions, the Attorney General states that public bodies may utilize any recognized system or program to provide FDIC insurance coverage, including CDARS, as long as such system or program satisfies the FDIC’s requirements for agency pass-through deposit insurance coverage. However, public bodies depositing state funds for investments in CDs are required to participate in a CDARS Reciprocal Transaction rather than a CDARS One-Way Transaction. That way, the financial institution domiciled or having a branch in Louisiana would be required to receive an equal amount of funds from other banks in the network. This same restriction does not apply to the deposit of local funds. Louisiana Legislative Auditor website: 04/16/2026 09:34:23 PM