So it view represents this new viewpoints of Work environment of one’s County Comptroller at the time it had been rendered

The view ong whatever else, there had been further legal times otherwise statutory amendments one to incur on facts talked about in the view.

Standard Municipal Law §§10(3), 11(2): The brand new conditions regarding General Civil Laws §10(1)(h) that restriction to 3 months the term away from an “eligible page off credit” given while the shelter to own state dumps and you may financial investments don’t apply at a keen irrevocable page regarding credit approved of the a qualifying federal financial bank.

Specifically, you may well ask perhaps the provisions out-of Standard Municipal Laws §10(1)(h) you to definitely essentially restrict so you’re able to 90 days the phrase from a keen “qualified page off credit” granted because protection to have local government deposits and you may investment applies to an enthusiastic irrevocable letter out-of borrowing from the bank provided because of the an FHLB.

General Civil Rules §§10 and you will 11 regulate the fresh new deposit and you can brief financial support away from monies because of the local governing bodies, in addition to areas. Not as much as General Municipal Legislation §§ten and you will eleven, all deposits and you can assets in excess of the total amount insured below arrangements of one’s Government Deposit Insurance rates Act 1 have to be secured relative to General Municipal Law §10(3) (Standard Civil Rules §§ ten, 11).

This can be responding into inquiry regarding your accessibility a letter from borrowing given of the a federal financial financial (hereinafter “FHLB”) while the defense having condition dumps

Standard Municipal Legislation §10(3) provides numerous alternatives for securing such as for instance too much amounts, for instance the greet off an enthusiastic “eligible page clickcashadvance.com personal loan rate? out-of borrowing from the bank”, payable to your state government, since the safety “toward percentage of a single hundred or so 40 per cent, of the aggregate quantity of social places” from the state government, and arranged interest (Standard Municipal Legislation § 10[c][i]). “Qualified letter of credit” is placed for this specific purpose as a whole Municipal Rules §10(1)(h) to mean:

[A]n irrevocable letter of credit issued in favor of the local government for an expression never to surpass ninety days 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 Funds — Dumps and you may Financial investments (name out of an enthusiastic irrevocable page away from credit provided as safeguards by the a being qualified government home loan bank)

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 actually revised inside 2002, although not, to particularly reference brand new anticipate from the local governing bodies away from a keen “irrevocable page regarding borrowing from the bank” granted because of the a keen FHLB so you’re able to safe continuously places (L 2002, ch 615, effective endment together with renumbered existing part (c) off subdivision 3 of section 10, because the fresh new subparagraph (c)(i).