It view is short for new views of one’s Workplace of one’s County Comptroller during the time it had been rendered

The brand new view ong other things, there have been after that courtroom times or statutory amendments that incur into products talked about on the advice.

Standard Civil Legislation 10(3), 11(2): The new provisions out-of General Civil Law 10(1)(h) you to definitely limit so you’re able to ninmais aussiy days the term of a keen eligible letter off credit issued as the cover having state government dumps and www.availableloan.net/loans/10000-dollar-payday-loan/ investment dont connect with a keen irrevocable letter from credit given by a qualifying federal home loan bank.

Specifically, you ask whether the conditions of Standard Municipal Law 10(1)(h) you to definitely basically limit to help you 3 months the definition of off an eligible page out-of borrowing granted since security to own state government deposits and you may financial investments relates to an irrevocable page from borrowing from the bank awarded because of the an FHLB.

Standard Municipal Legislation 10 and you will 11 govern new put and you may brief resource out-of monies because of the local governments, along with counties. Not as much as Standard Municipal Law 10 and 11, all of the places and you will financial investments more than extent insured around arrangements of Federal Deposit Insurance rates Act step 1 must be protected relative to Standard Municipal Laws 10(3) (General Municipal Law 10, 11).

It is in reaction with the inquiry regarding the use of a page off credit provided of the a federal home loan financial (hereinafter FHLB) as the defense to have condition dumps

General Civil Rules 10(3) provides several choices for securing instance too much number, for instance the anticipate off a keen eligible letter off borrowing from the bank, payable toward state, due to the fact coverage toward commission of just one hundred 40 percent, of your own aggregate number of public deposits about state, and decideded upon notice (General Civil Rules 10[c][i]). Qualified page of credit is defined for this specific purpose as a whole Civil Legislation 10(1)(h) in order to suggest:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase to not meet or exceed ninety days from 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).

Civil Fund — Deposits and you will Investments (title away from an enthusiastic irrevocable page out of borrowing awarded because shelter because of the a being qualified federal financial 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 Civil Legislation 10(3)(c) is amended in the 2002, but not, so you can specifically source the latest welcome by regional governing bodies off a keen irrevocable letter out of borrowing from the bank approved by the a keen FHLB in order to secure excessive places (L 2002, ch 615, effective endment in addition to renumbered present paragraph (c) out of subdivision step 3 off section ten, given that the newest subparagraph (c)(i).