This viewpoint means the fresh opinions of your Office of the Condition Comptroller during the time it was rendered

New view ong whatever else, there had been subsequent legal cases otherwise legal amendments one to happen on the points discussed on opinion.

General Municipal Laws 10(3), 11(2): New conditions from Standard Municipal Laws 10(1)(h) that limit so you’re able to 3 months the word from an eligible letter off borrowing from the bank issued because safety to possess state places and investment do not affect a keen irrevocable page away from credit awarded of the a qualifying federal home loan lender.

Particularly, you may well ask perhaps the terms off Standard Municipal Rules 10(1)(h) you to definitely generally maximum so you’re able to ninety days the phrase out of an qualified letter away from borrowing from the bank awarded while the cover to own local government places and you may expenditures relates to a keen irrevocable page out-of borrowing from the bank granted from the a keen FHLB.

Standard Civil Rules 10 and eleven govern brand new deposit and you can short term capital of funds by the local governments, together with counties. Under Standard Civil Rules ten and 11, every dumps and you can investments more than extent insured around terms of your own Government Put Insurance Act 1 need to be secure relative to Standard Municipal Legislation 10(3) (General Civil Law 10, 11).

This can be in response for the inquiry regarding the entry to a letter regarding borrowing from the bank given because of the a national home loan bank (hereinafter FHLB) just like the defense to own condition dumps

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Standard Civil Legislation 10(3) provides several alternatives for securing such as excessively number, including the desired regarding a keen eligible page regarding borrowing, payable to your local government, while the shelter toward commission of one hundred or so 40 per cent, of one’s aggregate quantity of societal deposits about local government, and you can decided notice (General Municipal Rules 10[c][i]). Eligible letter out-of borrowing from the bank is placed for this specific www.cashadvanceamerica.net/loans/loans-by-phone/ purpose generally Civil Law 10(1)(h) to help you mean:

[A]n irrevocable letter of credit issued in favor of the local government for a term to not go beyond 90 days by 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).

Civil Funds — Deposits and you will Investments (identity of an enthusiastic irrevocable page off borrowing from the bank granted just like the safeguards from the a qualifying government home loan financial)

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 Laws 10(3)(c) is actually amended into the 2002, however, so you’re able to especially resource the fresh greeting of the regional governing bodies off an enthusiastic irrevocable letter from credit approved from the a keen FHLB to help you safe way too much places (L 2002, ch 615, active endment and additionally renumbered current part (c) off subdivision step 3 from area 10, since the fresh new subparagraph (c)(i).