It thoughts means the latest views of your Place of work of the County Comptroller at that time it absolutely was rendered
The fresh view ong anything else, there are subsequent courtroom circumstances otherwise statutory amendments you to definitely sustain for the activities discussed on viewpoint.
General Municipal Rules 10(3), 11(2): The arrangements of General Civil Law 10(1)(h) you to restrict to ninety days the word out of an eligible letter regarding borrowing from the bank issued as safety for state dumps and you will investments installment loan company Lawrence KS dont affect an enthusiastic irrevocable page away from borrowing granted because of the a being qualified government home loan financial.
Specifically, you may well ask whether or not the terms out-of General Municipal Rules 10(1)(h) you to definitely generally restriction so you’re able to 3 months the expression of an eligible letter away from credit granted while the defense to own state places and you can financial investments applies to an irrevocable letter regarding credit issued of the a keen FHLB.
General Civil Legislation ten and you may 11 control the new put and you may temporary money off monies because of the regional governments, as well as areas. Around General Civil Laws ten and you will 11, the places and you may financial investments over the total amount insured below conditions of your own Federal Deposit Insurance rates Act step one must be secured in line with General Municipal Law 10(3) (Standard Civil Law ten, 11).
It is in response to the query about your entry to a page off borrowing from the bank given because of the a federal financial bank (hereinafter FHLB) as defense for county places
General Civil Law 10(3) brings several options for protecting eg excessive wide variety, like the allowed out of an enthusiastic qualified page away from borrowing from the bank, payable into state, while the security into payment of one hundred or so forty per cent, of the aggregate number of social dumps on the local government, and you can decided desire (Standard Municipal Rules 10[c][i]). Qualified page out-of borrowing from the bank is placed for this specific purpose as a whole Municipal Legislation 10(1)(h) to suggest:
[A]n irrevocable letter of credit issued in favor of the local government for a phrase never to surpass 90 days of the a lender (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 Financing — Places and you can Investment (term of an irrevocable letter of borrowing provided while the safeguards by a qualifying government home loan 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 Rules 10(3)(c) try revised inside the 2002, yet not, to specifically site the latest greet from the regional governing bodies from a keen irrevocable letter off borrowing given because of the an FHLB so you’re able to safe too much dumps (L 2002, ch 615, active endment plus renumbered current paragraph (c) of subdivision 3 off part ten, due to the fact the new subparagraph (c)(i).
