Which view means new views of your Work environment of one’s County Comptroller at that time it absolutely was made

Which view means new views of your Work environment of one’s County Comptroller at that time it absolutely was made

The newest advice ong anything else, there were after that court times otherwise statutory amendments that bear into issues discussed about view.

Standard Civil Legislation 10(3), 11(2): The fresh new provisions off Standard Civil Laws 10(1)(h) that maximum to 3 months the definition of off a keen qualified page out of borrowing from the bank provided since the coverage to possess state places and you will expenditures do not apply at an enthusiastic irrevocable page away from credit provided of the a qualifying federal home loan lender.

Especially, you may well ask whether the arrangements from General Municipal Rules 10(1)(h) you to definitely basically restriction to help you 3 months the term regarding an enthusiastic monthly installment loans Columbus TX eligible letter out of credit awarded while the shelter to have state government deposits and you can assets relates to an enthusiastic irrevocable letter off borrowing awarded by the an FHLB.

General Municipal Legislation ten and 11 regulate this new deposit and you can short term funding regarding monies by regional governments, also counties. Below Standard Civil Rules ten and eleven, most of the deposits and you can investments over the amount insured significantly less than terms of one’s Government Put Insurance rates Operate 1 have to be covered in accordance with General Municipal Rules 10(3) (Standard Municipal Laws ten, 11).

This is in response towards inquiry concerning your use of a letter away from credit issued by a federal financial financial (hereinafter FHLB) since cover having county places

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General Civil Law 10(3) brings numerous alternatives for protecting instance extreme number, including the anticipate regarding a keen qualified letter regarding credit, payable on state, once the safeguards into the fee of just one hundred 40 %, of one’s aggregate quantity of personal deposits on state, and you may agreed upon notice (Standard Municipal Law 10[c][i]). Qualified page away from borrowing is scheduled for this reason overall Civil Law 10(1)(h) to help you imply:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase to not ever go beyond 3 months from 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 Funds — Places and Opportunities (term regarding a keen irrevocable page from credit provided due to the fact defense by the a being qualified government financial lender)

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 Legislation 10(3)(c) are amended when you look at the 2002, not, so you’re able to specifically site the new invited by regional governments out of an irrevocable letter away from credit given from the a keen FHLB to safer way too much places (L 2002, ch 615, productive endment as well as renumbered current section (c) away from subdivision 3 from section 10, because the new subparagraph (c)(i).

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