This viewpoint is short for new viewpoints of your own Workplace of one’s County Comptroller during the time it had been made

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The fresh advice ong whatever else, there are subsequent court times otherwise statutory amendments that sustain to the points talked about regarding view.

Standard Municipal Law §§10(3), 11(2): The specifications regarding Standard Municipal Legislation §10(1)(h) you to definitely limit so you can ninety days the term out-of a keen “qualified letter regarding borrowing” granted just like the defense for local government dumps and you will financial investments do not affect an enthusiastic irrevocable page out of borrowing from the bank awarded of the a being qualified government financial lender.

Especially, you may well ask if the provisions out of General Municipal Laws §10(1)(h) that essentially limit so you can 90 days the word out of a keen “eligible page from credit” https://www.elitecashadvance.com/payday-loans-in/denver provided given that security getting local government dumps and investments relates to an irrevocable letter away from borrowing granted because of the a keen FHLB.

General Civil Law §§ten and you may eleven control the deposit and you will short term resource out-of monies by regional governments, and counties. Lower than Standard Municipal Legislation §§10 and you will eleven, all the dumps and you will expenditures more than the amount insured significantly less than specifications of Government Put Insurance Act 1 must be secured prior to Standard Civil Law §10(3) (Standard Civil Legislation §§ 10, 11).

That is in response to the inquiry concerning your access to a letter out-of borrowing awarded of the a federal home loan lender (hereinafter “FHLB”) as safety to have condition deposits

General Municipal Law §10(3) provides several choices for securing eg an excessive amount of quantity, like the allowed off a keen “qualified page out-of borrowing”, payable towards local government, just like the defense “on commission of just one hundred or so forty percent, of aggregate quantity of public dumps” on the local government, and decided interest (General Municipal Laws § 10[c][i]). “Eligible letter out-of credit” is defined for this reason as a whole Civil Rules §10(1)(h) so you’re able to imply:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase never to go beyond ninety days of 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).

Civil Fund — Places and you may Opportunities (name away from an irrevocable letter away from borrowing from the bank granted since safeguards of the a qualifying government 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.

Standard Civil Legislation § 10(3)(c) are revised for the 2002, not, so you’re able to specifically source this new allowed of the regional governments out-of an “irrevocable letter away from borrowing from the bank” granted by an FHLB to help you secure an excessive amount of dumps (L 2002, ch 615, effective endment and renumbered established paragraph (c) out-of subdivision 3 from area 10, given that the latest subparagraph (c)(i).

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