New opinion ong anything, there had been further legal cases otherwise statutory amendments one sustain toward situations talked about about opinion.

Standard Municipal Rules §§10(3), 11(2): The new terms away from General Municipal Legislation §10(1)(h) one to maximum to ninainsi quey days the term out-of an “qualified letter away from borrowing from the bank” approved because the safety to have state dumps and you may expenditures don’t apply at an irrevocable page of credit awarded by the a qualifying government financial bank.

Especially, you ask if the conditions from General Municipal Law §10(1)(h) one basically maximum to 3 months the term away from an enthusiastic “eligible page of borrowing” issued as safety to own state deposits and you may investment relates to an irrevocable page from credit granted by the an enthusiastic FHLB.

Standard Civil Laws §§ten and you will eleven control the new put and you may short term investment out of funds by the regional governments, including counties. Less than Standard Municipal Laws §§ten and you may eleven, the deposits and you can expenditures more than the quantity insured around arrangements of Government Deposit Insurance rates Work 1 must be shielded in best place to get a medical loan line with General Civil Legislation §10(3) (Standard Municipal Legislation §§ ten, 11).

This will be responding towards the query concerning your access to a page of borrowing issued by the a national mortgage financial (hereinafter “FHLB”) while the security to possess state dumps

Standard Municipal Laws §10(3) provides several options for protecting such as too-much quantity, including the desired away from an “eligible page regarding borrowing”, payable toward state government, just like the coverage “on percentage of just one hundred or so forty percent, of your aggregate amount of social deposits” on state, and you may arranged notice (Standard Municipal Laws § 10[c][i]). “Eligible letter regarding borrowing” is defined for this function typically Municipal Laws §10(1)(h) so you’re able to imply:

[A]n irrevocable letter of credit issued in favor of the local government for a term not to ever exceed 90 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 Financing — Deposits and you may Expenditures (title out-of a keen irrevocable page out-of borrowing from the bank given given that cover by the a being qualified 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 Laws § 10(3)(c) is revised in 2002, however, so you can particularly resource the fresh desired because of the local governing bodies off a keen “irrevocable page away from credit” granted of the an FHLB so you’re able to secure excess places (L 2002, ch 615, active endment also renumbered present section (c) off subdivision step three of point 10, because the newest subparagraph (c)(i).

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