Opinion Number

Dear Senator Boasso:

This office is in receipt of your request for an Attorney General's opinion regarding the legality of a one-year loan of $5,000, at an interest rate of 2%, which the Lake Catherine Civic Organization, a presumably private organization, is considering providing to the Lake Catherine Sewage and Water District in order to provide the District with start-up funds. The District is a political subdivision of the state, created pursuant to the provisions of LSA-R.S. 33:4065.1, et seq.

State Bond Commission approval is required whenever a political subdivision incurs debt. La.…