So it opinion is short for the latest viewpoints of Office of the State Comptroller during the time it was rendered
The view ong anything else, there have been after that court cases otherwise statutory amendments you to sustain to the facts talked about in the advice.
Standard Municipal Law 10(3), 11(2): This new provisions from Standard Municipal Law 10(1)(h) that maximum in order to 90 days the word away from a keen qualified page regarding credit awarded due to the fact shelter for state government dumps and you can opportunities dont apply to a keen irrevocable page regarding borrowing from the bank approved because of the a being qualified federal mortgage lender.
Particularly, you ask if the arrangements https://speedycashloan.net/loans/5000-dollar-payday-loan/ from General Civil Laws 10(1)(h) one essentially limit so you’re able to 90 days the phrase away from a keen qualified page off borrowing from the bank given since safety getting local government dumps and financial investments pertains to a keen irrevocable letter of credit given of the a keen FHLB.
General Civil Laws 10 and eleven regulate new deposit and you can short term funding away from funds by regional governing bodies, along with counties. Less than Standard Civil Law ten and you can eleven, all of the deposits and you will expenditures over extent covered less than arrangements of your Government Put Insurance Act 1 should be secured relative to Standard Municipal Legislation 10(3) (General Civil Law 10, 11).
That is as a result toward query concerning your use of a page regarding credit approved of the a national home loan financial (hereinafter FHLB) since shelter to possess condition places
General Civil Law 10(3) will bring multiple alternatives for securing instance excessively quantity, for instance the acceptance from a keen eligible letter out of borrowing, payable on the state government, just like the cover toward fee of 1 hundred 40 percent, of your own aggregate amount of public dumps regarding the local government, and decided notice (Standard Municipal Law 10[c][i]). Eligible page of credit is defined for this specific purpose generally speaking Civil Legislation 10(1)(h) to help you suggest:
[A]n irrevocable letter of credit issued in favor of the local government for a term not to surpass 3 months because 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 Loans — Deposits and you will Assets (title away from an irrevocable page regarding borrowing granted as shelter from the a qualifying 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.
General Civil Rules 10(3)(c) are revised from inside the 2002, not, to particularly reference the new welcome because of the local governments from an irrevocable page off borrowing from the bank approved by the an FHLB so you’re able to safer an excessive amount of places (L 2002, ch 615, productive endment as well as renumbered existing part (c) out-of subdivision step three of point ten, as the the newest subparagraph (c)(i).