Which advice means the fresh viewpoints of your own Work environment of your County Comptroller at that time it was rendered

New view ong anything else, there had been further legal instances or legal amendments one sustain on the things chatted about on the advice.

Standard Civil Laws 10(3), 11(2): The latest terms out of General Municipal Law 10(1)(h) that limit in order to ninety days the phrase out-of an qualified letter out-of credit approved because cover to own local government dumps and you may financial investments do not apply to a keen irrevocable letter regarding borrowing provided by a being qualified federal mortgage financial.

Specifically, you may well ask whether or not the provisions regarding General Civil Laws 10(1)(h) that generally limitation to help you 90 days the phrase out-of a keen eligible letter off borrowing from the bank provided because coverage to have state places and financial investments applies to a keen irrevocable letter away from borrowing given because of the a keen FHLB.

Standard Municipal Laws ten and you can 11 govern new put and temporary funding from monies from the local governing bodies, in addition to counties. Not as much as Standard Municipal Legislation ten and you will eleven, most of the places and financial investments over the amount insured around terms of one’s Federal Deposit Insurance rates Act step one need to be secure in line with General Municipal Rules 10(3) (Standard Municipal Legislation 10, 11).

This will be in response with the inquiry about your usage of a page out-of borrowing from the bank approved from the a national financial lender (hereinafter FHLB) while the safeguards to possess state dumps

General Civil Rules 10(3) will bring several alternatives for protecting instance excess numbers, like the anticipate out of an enthusiastic eligible page out-of borrowing from the bank, payable into the state government, just like the defense to your payment of one hundred or so 40 percent, of the aggregate amount of social dumps on state, and agreed upon attention (Standard Civil Rules 10[c][i]). Qualified page out-of credit is placed for this reason generally Civil Rules 10(1)(h) in order to mean:

[A]n irrevocable letter of credit issued in favor of the local government for a term not to meet or exceed 3 months by the a bank (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 Loans — Places and you may Investments (name off an enthusiastic irrevocable letter away from credit awarded as the defense by the a qualifying government home loan 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 urgent link 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.

General Municipal Legislation 10(3)(c) is actually amended in 2002, not, in order to especially resource the brand new greet by the local governments away from a keen irrevocable page out-of credit provided because of the an FHLB to secure extreme deposits (L 2002, ch 615, productive endment along with renumbered existing section (c) from subdivision step 3 from part ten, since the latest subparagraph (c)(i).