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Which viewpoint stands for the brand new feedback of Office of Condition Comptroller at the time it had been made

Which viewpoint stands for the brand new feedback of Office of Condition Comptroller at the time it had been made

This new advice ong whatever else, there were next legal circumstances or legal amendments you to bear to the circumstances talked about on the opinion.

Standard Municipal Laws §§10(3), 11(2): The fresh new specifications out of General Civil Laws §10(1)(h) one to restrict so you’re able to ninainsi quey days the word out-of an enthusiastic “qualified letter away from borrowing” given due to the fact security to have local government deposits and you may investment don’t apply to a keen irrevocable letter out-of borrowing given by a qualifying government mortgage lender.

Particularly, you may well ask if the conditions of Standard Municipal Laws §10(1)(h) you to generally limit to help you 90 days the expression regarding a keen “qualified page off borrowing from the bank” awarded since protection having state government dumps and you can assets relates to a keen irrevocable letter out of borrowing issued from the an enthusiastic FHLB.

General Municipal Rules §§10 and you can 11 regulate the newest put and you may brief financial support of monies because of the regional governments, and counties. Less than Standard Municipal Legislation §§ten and you may eleven, most of the deposits and you will investments in excess of the quantity covered lower than arrangements of your Federal Put Insurance policies Work step 1 should be secured relative to General Civil Law §10(3) (Standard Municipal Law §§ 10, 11).

This is responding into the inquiry concerning your use of a letter from borrowing granted from the a national financial lender (hereinafter “FHLB”) since shelter for state dumps

General Civil Legislation §10(3) brings multiple choices for securing instance excess numbers, such as the anticipate out-of an enthusiastic “eligible letter off borrowing”, payable to the state government, as protection “into the percentage of just one hundred 40 per cent, of your aggregate quantity of personal deposits” regarding local government, and you can arranged appeal (General Civil Legislation § 10[c][i]). “Eligible page of borrowing from the bank” is scheduled for this purpose typically Civil Rules §10(1)(h) to indicate:

[A]n irrevocable letter of credit issued in favor of the local government for a term to not surpass 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 Finance — Places and you may Expenditures (identity out-of an enthusiastic irrevocable letter away from borrowing awarded as defense from the a being qualified government 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 Columbus installment loan no credi checks no bank account 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 Municipal Rules § 10(3)(c) is actually revised into the 2002, although not, in order to specifically site the latest acceptance because of the regional governments out-of a keen “irrevocable page out-of borrowing” granted from the a keen FHLB in order to safer way too much dumps (L 2002, ch 615, active endment and additionally renumbered present section (c) regarding subdivision step 3 of area ten, once the this new subparagraph (c)(i).

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