NOTE: §931 eff. until July 1, 2021. See Acts 2018, No. 569.
PART X. PARTICIPATING CERTIFICATES
§931. Participating certificates issued for bonds held in trust; registry and payment
Whenever any bonds of this state, or any parish, municipality, levee or drainage district, or other political subdivision are deposited in trust with any corporation, authorized under the laws of this state to do a banking and trust business, and the trustee, in accordance with the trust, issues note participating certificates payable to bearer and entitling the holder or holders thereof to participate in the principal and interest of the bond or bonds with which the participating certificate or certificates are identified, the bond or bonds so deposited with the trustee shall be registered in the name of the trustee with the proper authority, as hereinafter defined; and the bond or bonds shall not be released from registry nor shall the principal of the bond or bonds, so registered, be paid to the trustee, except upon the surrender (1) of the registered bond or bonds (or the certificate or certificates of registry issued in lieu thereof), and (2) of such participating certificate or certificates as may have been issued by the trustee and identified with the bond or bonds respectively.
When the principal of any such bond so registered becomes due and payable, and the trustee is unable to produce and surrender all of the participating certificates issued against and identified with the bond, the trustee shall, upon the surrender of the registered bond, (or the certificate of registry issued in lieu thereof) be entitled to receive such proportion of the principal as may or shall be represented by the respective participating certificates, surrendered with the bond; and the remainder of the principal shall be held by the proper authority and paid over to the trustee from time to time pro rata upon the surrender of the remaining participating certificates.
All interest on the bond shall cease when it becomes due according to its tenor and effect.
NOTE: §931 as repealed by Acts 2018, No. 569, eff. July 1, 2021.
§931. Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.
Acts 2018, No. 569, §2, eff. July 1, 2021.
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