Which view means the fresh opinions of the Place of work of your Condition Comptroller at that time it absolutely was rendered
New opinion ong whatever else, there have been next legal cases otherwise statutory amendments one to bear towards the issues talked about regarding viewpoint.
Standard Municipal Rules §§10(3), 11(2): The brand new terms off General Municipal Rules §10(1)(h) you to limitation so you’re able to 3 months the definition of regarding an enthusiastic “qualified page out of borrowing” given just like the protection to own local government deposits and you may opportunities do not affect a keen irrevocable letter out of borrowing from the bank provided of the a being qualified government financial bank.
Specifically, you may well ask whether or not the arrangements of Standard Municipal Rules §10(1)(h) one basically limitation to help you ninety days the word from an “eligible letter away from credit” granted just like the coverage to have local government deposits and financial investments applies to an irrevocable page out of borrowing from the bank issued of the an enthusiastic FHLB.
General Civil Law §§ten and 11 regulate new deposit and short term capital off funds because of the local governments, and counties. Under General Municipal Law §§ten and eleven, all deposits and you will opportunities over the total amount insured around specifications of one’s Federal Deposit Insurance policies Act step 1 need to be covered in accordance with General Civil Legislation §10(3) (General Municipal Laws §§ 10, 11).
This will be as a result into inquiry regarding the access to a page away from borrowing from the bank awarded by a federal financial lender (hereinafter “FHLB”) once the shelter getting state dumps
Standard Civil Legislation §10(3) provides numerous alternatives for securing such as for example an excessive amount of amounts, including the invited from an “eligible page regarding borrowing from the bank”, payable into the state government, because the defense “on payment of just one hundred or so forty %, of your own aggregate amount of personal places” in the state, and you can decideded upon desire (General Municipal Legislation § 10[c][i]). “Qualified letter away from borrowing from the bank” is set for this purpose generally speaking Municipal Legislation §10(1)(h) in order to mean:
[A]n irrevocable letter of credit issued in favor of the local government for a phrase never to meet or exceed ninety days because 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 elitecashadvance.com/personal-loans-or/dallas 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 Finance — Places and you can Assets (name out of an irrevocable letter out of credit provided due to the fact shelter by a qualifying government mortgage 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 Civil Laws § 10(3)(c) try revised inside the 2002, not, so you can specifically resource the invited by local governing bodies regarding an “irrevocable letter away from credit” granted because of the an FHLB in order to safe too-much dumps (L 2002, ch 615, productive endment in addition to renumbered present section (c) of subdivision 3 out of section 10, since this new subparagraph (c)(i).
