That it viewpoint represents the new viewpoints of one’s Workplace of State Comptroller at that time it absolutely was made

That it viewpoint represents the new viewpoints of one’s Workplace of State Comptroller at that time it absolutely was made

The brand new thoughts ong whatever else, there have been subsequent legal circumstances or legal amendments one happen to the affairs talked about on the viewpoint.

Standard Civil Law 10(3), 11(2): The fresh conditions off Standard Municipal Rules 10(1)(h) you to restriction so you can ninainsi quey days the definition of out-of an enthusiastic eligible letter regarding borrowing from the bank given due to the fact protection to possess local government places and you can opportunities do not apply at a keen irrevocable page from borrowing from the bank granted by a qualifying federal mortgage lender.

Specifically, you may well ask perhaps the provisions from Standard Civil Legislation 10(1)(h) that basically maximum to help you ninety days the word from a keen eligible page of borrowing awarded due to the fact security having local government deposits and opportunities pertains to a keen irrevocable page out of borrowing given by an enthusiastic FHLB.

Standard Municipal Law ten and you can 11 regulate the latest put and you may brief financial support of funds because of the local governing bodies, and counties. Under Standard Civil Law 10 and eleven, all the places and you will expenditures over the total amount covered below conditions of the Government Deposit Insurance Work step 1 have to be secured in accordance with Standard Civil Rules 10(3) (Standard Municipal Legislation ten, 11).

This might be in response into the inquiry regarding your the means to access a page away from borrowing from the bank approved of the a federal mortgage bank (hereinafter FHLB) since the defense to have state deposits

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Standard Civil Law 10(3) brings multiple alternatives for protecting such as extreme wide variety, including the allowed regarding an eligible page away from borrowing, payable towards state government, as protection to the commission of a single hundred 40 percent, of aggregate number of public deposits in the local government, and you will agreed upon notice (Standard Civil Law 10[c][i]). Eligible page out-of credit is placed for this purpose in general Civil Laws 10(1)(h) in order to indicate:

[A]n irrevocable letter of credit issued in favor of the local government for a term never to surpass 90 days of 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).

Municipal Money — fixed rate term loan Deposits and you will Expenditures (name from a keen irrevocable page from borrowing from the bank provided while the safeguards by a qualifying 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 Municipal Laws 10(3)(c) are amended in the 2002, however, so you can especially reference the brand new anticipate by regional governing bodies out of a keen irrevocable letter off credit provided by a keen FHLB to help you safe an excessive amount of deposits (L 2002, ch 615, productive endment as well as renumbered existing paragraph (c) from subdivision step three away from part 10, just like the the subparagraph (c)(i).

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