It opinion means brand new views of your Workplace of your Condition Comptroller at the time it was rendered
New view ong whatever else, there are further judge instances or statutory amendments you to definitely happen on the circumstances chatted about in the view.
General Municipal Law 10(3), 11(2): The brand new specifications off Standard Municipal Legislation 10(1)(h) you to definitely maximum so you can 90 days the definition of away from a keen eligible letter away from borrowing from the bank given as the coverage getting state government deposits and you can financial investments do not affect a keen irrevocable letter out-of borrowing from the bank approved by a being qualified government financial bank.
Specifically, you may well ask if the conditions regarding General Civil Laws 10(1)(h) that fundamentally limit to help you ninety days the definition of out of a keen eligible letter out of borrowing from the bank provided as the security Hudson installment loan with savings account to have state government places and you will assets relates to an irrevocable letter away from credit given from the an enthusiastic FHLB.
Standard Civil Law ten and you may eleven control the brand new deposit and you may short term money off funds from the local governing bodies, and counties. Lower than Standard Civil Legislation ten and you may 11, all the dumps and you can expenditures more than the quantity covered around conditions of Federal Deposit Insurance Work step 1 should be covered relative to General Municipal Laws 10(3) (General Civil Rules 10, 11).
This can be as a result into the query regarding your the means to access a page away from borrowing from the bank granted from the a federal home loan lender (hereinafter FHLB) because the safeguards having state deposits
General Municipal Laws 10(3) will bring numerous alternatives for protecting such as for example too much wide variety, for instance the anticipate from a keen eligible page of credit, payable on the local government, because the security into fee of 1 hundred or so forty percent, of aggregate quantity of social dumps in the state, and you can decideded upon desire (Standard Civil Laws 10[c][i]). Eligible page regarding credit is scheduled for this purpose generally Municipal Legislation 10(1)(h) so you can imply:
[A]n irrevocable letter of credit issued in favor of the local government for a term not to ever exceed 3 months because 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 Money — Places and Investments (name out of an irrevocable page regarding borrowing from the bank granted while the protection by a qualifying federal 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 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 Civil Rules 10(3)(c) is actually amended in the 2002, but not, in order to particularly resource the fresh new anticipate of the local governing bodies regarding a keen irrevocable letter regarding borrowing issued by an FHLB so you’re able to safe continuously deposits (L 2002, ch 615, active endment also renumbered established paragraph (c) from subdivision step three away from point 10, because the the fresh subparagraph (c)(i).
