Louisiana beefs up statutory lien in rewrite of local bond financing law

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“The reorganization and new laws put into place will provide additional confidence to investors. It may mean savings to issuers in the form of lower rates.”

Eric La Fleur, State Senator.

In a revamp of Louisiana's public financing laws, state legislators strengthened the statutory lien on local governmental bonds, a move prompted by high-profile municipal bankruptcies such as Detroit’s.

Clarifying the lien wasn't the Legislature's primary goal in revising the state's bond laws, which was the result of a comprehensive effort to modernize and consolidate financing regulations, according to those who spearheaded it.

“The reorganization and new laws put into place will provide additional confidence to investors,” said Sen. Eric LaFleur, D-Ville Platte. “It may mean savings to issuers in the form of lower rates.”


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