---
urn: urn:us-la:rs:9:2095
citation: "R.S. 9:2095"
status: active
breadcrumb: "Title 9 › Code Preliminary Title › Code Book III › Code Title II › Chapter 1 › Part V › Subpart B"
acts_citations:
  - { year: 1982, number: 279, section: 1, effective_date: null, role: enactment }
---

# Bank deposits

Although a trustee can properly make a general deposit of trust money in a bank, he shall use reasonable care in selecting the bank and properly earmark the deposit as a deposit of trust funds by him as trustee, unless the trust instrument provides otherwise.

A corporate trustee making a general deposit of trust money with an affiliate or its own banking department has a duty to a beneficiary to obtain as security for the deposit readily marketable bonds or other obligations having and maintaining a market value at least equal to the amount of the deposit, unless dispensed from doing so by specific words in the trust instrument, but such a dispensation shall not be construed as preventing a corporate trustee from putting up security for a deposit of trust money if it desires to do so. No security shall be required for any deposit up to the amount insured by the Federal Deposit Insurance Corporation.