So it view signifies the fresh new views of your own Office of the State Comptroller at the time it was made
Brand new thoughts ong anything, there had been next court instances or statutory amendments one sustain on the items discussed regarding opinion.
General Municipal Law 10(3), 11(2): Brand new conditions out of General Municipal Rules 10(1)(h) one to restriction so you can 90 days the phrase away from an enthusiastic qualified page out-of borrowing given just like the protection to own state government deposits and you will financial investments dont connect with a keen irrevocable page out of credit awarded because of the a qualifying federal mortgage financial.
Particularly, you ask whether the conditions of General Municipal Rules 10(1)(h) you to definitely basically limitation to help you ninety days the definition of out-of a keen qualified page regarding credit approved since security to have state government deposits and you can expenditures pertains to an irrevocable page regarding credit issued from the a keen FHLB.
Standard Municipal Law ten and 11 regulate the fresh deposit and short-term money of monies from the regional governments, plus counties. Less than Standard Civil Legislation 10 and you can eleven, the dumps and you may investment more than extent covered significantly less than conditions of one’s Government Put Insurance policies Act 1 should be secured relative to Standard Civil Law 10(3) (General Municipal Law 10, 11).
This will be as a result towards inquiry concerning your use of a letter from borrowing from the bank given because of the a national financial financial (hereinafter FHLB) while the safety to own condition dumps
Standard Municipal Laws 10(3) provides multiple options for protecting such as for instance extreme numbers, such as the welcome regarding an enthusiastic eligible letter out-of credit, payable toward state, because the security to your commission of a single hundred or so 40 per cent, of your own aggregate number of personal places on state, and you can decideded upon notice (Standard Civil Laws 10[c][i]). Eligible letter off credit is defined for this purpose generally Civil Rules 10(1)(h) in order to suggest:
[A]n irrevocable letter of credit issued in favor of the local government for a term to not ever meet or exceed ninety days by 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 https://clickcashadvance.com/payday-loans-in/indianapolis/ capital requirements (emphasis added).
Municipal Finance — Places and Assets (name from an enthusiastic irrevocable letter away from borrowing given while the security by the a being qualified government mortgage 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.
Standard Municipal Legislation 10(3)(c) are amended from inside the 2002, although not, so you’re able to specifically site new greet from the regional governments out-of an irrevocable letter out of borrowing given from the a keen FHLB to safer excessive dumps (L 2002, ch 615, energetic endment together with renumbered present paragraph (c) out-of subdivision 3 away from section 10, due to the fact the fresh subparagraph (c)(i).