It view represents the newest feedback of the Place of work of the County Comptroller at that time it had been made
Brand new advice ong whatever else, there had been subsequent judge circumstances or legal amendments one to incur for the situations discussed on the opinion.
Standard Municipal Legislation §§10(3), 11(2): The latest specifications regarding Standard Civil Laws §10(1)(h) you to definitely limit so you can ninety days the phrase of a keen “qualified letter off borrowing from the bank” given because the cover having local government deposits and expenditures don’t connect with an enthusiastic irrevocable letter away from borrowing from the bank issued by the a being qualified government mortgage bank.
Specifically, you may well ask whether the provisions off Standard Civil Laws §10(1)(h) that generally limitation to ninety days the term off an enthusiastic “qualified page off borrowing from the bank” issued given that coverage for local government places and investment relates to an enthusiastic irrevocable letter out-of borrowing awarded of the an enthusiastic FHLB.
General Municipal Law §§ten and eleven control the fresh new deposit and you will temporary financing out-of monies from the regional governments, together with counties. Under Standard Municipal Legislation §§10 and eleven, every places and you will assets in excess of the total amount insured less than conditions of your own Government Deposit Insurance policies Operate step 1 must be protected relative to General Civil Rules §10(3) (General Municipal Law §§ 10, 11).
This is certainly in response towards query regarding the entry to a letter away from credit given by the a federal financial bank (hereinafter “FHLB”) given that cover getting state deposits
Standard Municipal Laws §10(3) provides multiple choices for securing such as for example extreme quantity, for instance the greet regarding a keen “qualified letter of borrowing from the bank”, payable to your state government, as the shelter “to the commission of 1 hundred or so 40 %, of one’s aggregate level of public deposits” in the local government, and you may decideded upon attract (General Civil Law § 10[c][i]). “Qualified page of borrowing from the bank” is scheduled for this specific purpose generally Municipal Law §10(1)(h) so you’re able to suggest:
[A]n irrevocable letter of credit issued in favor of the local government for a term never to meet or exceed ninety days 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 Fund — Dumps and you will Assets (identity from an irrevocable letter of borrowing from the bank approved just like the safety by the a qualifying federal home loan bank)
For purposes of General Municipal Law §10, a “bank” is defined to mean a national https://www.clickcashadvance.com/payday-loans-ca/san-francisco 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.
Standard Civil Legislation § 10(3)(c) was revised inside 2002, but not, to specifically reference the brand new acceptance by the regional governments from a keen “irrevocable letter regarding borrowing” given because of the a keen FHLB in order to safe way too much dumps (L 2002, ch 615, active endment along with renumbered existing part (c) of subdivision step three off area 10, while the the newest subparagraph (c)(i).
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