So it viewpoint signifies the new opinions of your own Place of work of County Comptroller at the time it absolutely was made

The newest advice ong anything, there are after that courtroom instances otherwise legal amendments one bear for the facts discussed on view.

General Municipal Law §§10(3), 11(2): Brand new provisions off Standard Municipal Legislation §10(1)(h) you to definitely limit to ninainsi quey days the phrase away from a keen “eligible page out of credit” issued since protection having local government deposits and you can financial investments don’t apply at an enthusiastic irrevocable page out-of borrowing approved of the a qualifying government home loan lender.

Specifically, you ask if the conditions from Standard Civil Law §10(1)(h) you to definitely basically limit in order to 90 days the term of an enthusiastic “qualified letter out of credit” provided as shelter to own local government dumps and you will investment relates to an enthusiastic irrevocable page away from borrowing awarded from the an enthusiastic FHLB.

General Municipal Legislation §§10 and you may 11 control the new put and temporary resource off monies by the local governing bodies, as well as counties. Under Standard Municipal Rules §§10 and you may 11, all of the deposits and you will expenditures over extent covered significantly less than conditions of one’s Government Deposit Insurance policies Work step 1 must be secured in line with Standard Municipal Laws §10(3) (Standard Civil Laws §§ 10, 11).

This really is in reaction for the query regarding the accessibility a page away from borrowing approved by a national mortgage lender (hereinafter “FHLB”) due to the fact security having county deposits

General Municipal Legislation §10(3) brings multiple alternatives for protecting such as for instance too much number, for instance the greet off an enthusiastic “qualified letter away from credit”, payable to your state government, since the security “toward percentage of a single hundred forty per cent, of the aggregate level of societal dumps” about state, and agreed upon notice (Standard Municipal Laws § 10[c][i]). “Eligible letter of credit” is set for this purpose in general Civil Law §10(1)(h) to mean:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase never to surpass 3 months of the a financial (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 Funds — Dumps and you can Assets (term regarding an irrevocable page regarding borrowing provided given that shelter from the a being qualified federal mortgage 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 installment loans in Ontario WI Rules § 10(3)(c) are amended inside 2002, however, so you can specifically site this new greeting of the local governments from a keen “irrevocable page regarding borrowing from the bank” issued by an FHLB to help you safe extreme places (L 2002, ch 615, energetic endment as well as renumbered current part (c) out-of subdivision step three away from section ten, as the brand new subparagraph (c)(i).

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