03 Jun It view signifies the new opinions of one’s Work environment of the Condition Comptroller during the time it was rendered

The newest thoughts ong anything else, there had been then judge times or statutory amendments one to happen to the circumstances talked about about view.

General Civil Legislation §§10(3), 11(2): The fresh provisions out-of General Municipal Legislation §10(1)(h) that limitation to help you ninety days the term regarding a keen “qualified letter of credit” granted since the security getting local government deposits and expenditures do not apply at a keen irrevocable letter away from borrowing from the bank awarded from the a qualifying government mortgage bank.

Especially, you ask whether or not the specifications away from Standard Civil Legislation §10(1)(h) one fundamentally limitation to help you 90 days the definition of out of an “qualified letter of borrowing” granted because protection to possess state deposits and you can investment relates to a keen irrevocable page out-of borrowing given by an FHLB.

Standard Municipal Rules §§10 and 11 govern the brand new put and you may temporary resource off funds by local governments, and counties. Under General Civil Law §§ten and you may 11, all places and you will assets over extent covered under provisions of one’s Government Put Insurance Work step one should be covered in line with Standard Civil Laws §10(3) (General Civil Law §§ 10, 11).

This will be in response into the inquiry regarding your entry to a letter away from borrowing issued from the a national mortgage bank (hereinafter “FHLB”) since the security for condition places

Standard Municipal Laws §10(3) provides numerous choices for protecting such excess quantity, including the desired out of a keen “qualified page regarding borrowing”, payable to the state, as cover “to your commission of just one hundred or so 40 percent, of your own aggregate level of social deposits” regarding the local government, and you can decideded upon attract (General Civil Laws § 10[c][i]). “Eligible letter from borrowing from the bank” is placed for this function generally speaking Civil Legislation §10(1)(h) to suggest:

[A]n irrevocable letter of credit issued in favor of the local government for an expression not to surpass ninety days of the a lender (other than the bank with which the money is being deposited or invested) whose commercial paper and other unsecured short-term debt obligations (or, in the case of a bank which is the principal subsidiary of a holding company, whose holding company’s commercial paper and other unsecured short-term debt obligations) are rated in one of the three highest rating categories (based on the credit of such bank or holding company) by at least one nationally recognized statistical rating organization or by a bank (other than the bank with which the money is being deposited or invested) that is [in compliance] with applicable federal minimum risk-based capital requirements (emphasis added).

Municipal Fund — Dumps and you can Investment (term off a keen irrevocable letter from borrowing granted just like http://www.clickcashadvance.com/installment-loans-wy/hudson/ the cover from the a being qualified federal financial bank)

For purposes of General Municipal Law §10, a “bank” is defined to mean a national banking association (see 12 USC §21 et seq.) or a corporation, other than a trust company, organized under or subject to the provisions of article 3 of the New York State Banking Law (General Municipal Law §10[d]; Banking Law §2). FHLBs, which are supervised by the Federal Housing Finance Board, are separate regional corporations, owned by those savings and loan associations, cooperative banks, homestead associations, insurance companies, savings bank, and other insured depository institutions within the region that are eligible and have become members of the FHLB (12 USC §§1422a, 1424, 1426, 1432). 2 As such, they do not fall within the definition of “bank” for purposes of acceptance of an “eligible letter of credit” under section 10 of the General Municipal Law.

Standard Civil Rules § 10(3)(c) is amended into the 2002, but not, to help you especially resource the fresh new invited by the regional governments regarding a keen “irrevocable letter regarding borrowing from the bank” granted from the an FHLB to help you safe excessively places (L 2002, ch 615, productive endment in addition to renumbered existing paragraph (c) from subdivision step 3 of area ten, because the new subparagraph (c)(i).