Which viewpoint is short for new opinions of the Office of the Condition Comptroller at that time it actually was rendered

The new advice ong anything else, there have been next court times or legal amendments one sustain towards the points discussed regarding the advice.

Standard Municipal Legislation 10(3), 11(2): The newest arrangements regarding General Municipal Rules 10(1)(h) one to restrict so you can 3 months the term regarding a keen qualified page away from borrowing issued just like the safeguards to own state government deposits and you may financial investments dont apply to an enthusiastic irrevocable page out of http://elitecashadvance.com/personal-loans-wv/prince/ credit awarded by the a being qualified government mortgage bank.

Specifically, you may well ask whether or not the conditions of General Municipal Legislation 10(1)(h) that generally restrict in order to 90 days the word regarding a keen qualified page out-of borrowing from the bank granted since protection to possess state government deposits and you can opportunities pertains to an irrevocable letter out-of borrowing granted of the an enthusiastic FHLB.

General Civil Law ten and you will eleven control the latest put and you may short term resource regarding monies because of the regional governing bodies, along with counties. Around General Civil Legislation 10 and you can eleven, most of the dumps and investment over extent insured below provisions of your own Government Put Insurance policies Operate step one have to be shielded relative to General Civil Legislation 10(3) (General Civil Laws ten, 11).

This is as a result to the query concerning your the means to access a letter out-of borrowing from the bank awarded by a national mortgage bank (hereinafter FHLB) just like the shelter for state places

General Municipal Rules 10(3) will bring multiple alternatives for securing such as for example way too much wide variety, such as the allowed regarding an eligible letter out-of credit, payable with the state government, once the shelter towards the payment of 1 hundred or so forty %, of one’s aggregate level of personal dumps on the local government, and you may decided desire (Standard Municipal Law 10[c][i]). Qualified page out-of borrowing is scheduled for this reason overall Municipal Laws 10(1)(h) so you’re able to indicate:

[A]n irrevocable letter of credit issued in favor of the local government for an expression not to ever exceed 3 months by 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 Loans — Places and Investment (label from an irrevocable page of borrowing from the bank awarded as the protection because of the a being qualified government mortgage 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 Municipal Law 10(3)(c) try revised inside the 2002, although not, to help you particularly resource the fresh welcome because of the regional governments off an irrevocable letter out of credit awarded by a keen FHLB so you’re able to secure too-much places (L 2002, ch 615, effective endment and additionally renumbered current paragraph (c) from subdivision 3 off part ten, as the fresh subparagraph (c)(i).