On May 10, 2016 the governor of Louisiana signed into law a bill (HB640) that places restrictions on the authority of domestic insurers to invest in the securities of foreign nations. Under existing law such investments are already subject to certain requirements and restrictions. The new law adds further requirements and restrictions, including the requirement that the securities shall be the direct legal obligation of a foreign nation that is a member of the Organization for Economic Co-operation and Development, for which investments in or business transactions with are not prohibited or restricted by any law, regulation, or rule of the United States or the state of Louisiana. The law further requires that the securities not be in default, be issued in the U.S. market, and be denominated in U.S. dollars; that the full faith and credit of the foreign nation shall have been pledged for the payment of principal and interest of its securities; and that the debt of the issuing country be rated at least A- or better by Standard & Poor's Corporation or A3 or better by Moody's, Inc. or an equivalent investment grade by a securities ratings organization. The total investment of the insurer in such foreign securities at any one time shall not exceed 5% of an insurer's admitted assets. The law took effect upon signature of the governor.