This advice signifies the fresh feedback of the Work environment of your County Comptroller during the time it actually was made

The viewpoint ong other things, there have been after that courtroom circumstances or legal amendments one to happen towards the circumstances talked about throughout the view.

Standard Civil Law 10(3), 11(2): The new terms off General Civil Legislation 10(1)(h) one to limitation so you can 90 days the definition of out of an eligible letter of borrowing issued just like the shelter having state government dumps and you will investment dont apply at an enthusiastic irrevocable letter off credit provided by a being qualified government financial bank.

Specifically, you may well ask perhaps the terms out of Standard Municipal Legislation 10(1)(h) you to definitely generally maximum to help you 90 days the phrase away from an qualified letter out-of borrowing from the bank given once the defense to own local government deposits and you will expenditures relates to an enthusiastic irrevocable page from credit given by the a keen FHLB.

Standard Civil Rules ten and you will 11 govern the brand new deposit and brief financial support from funds by regional governing bodies, including areas. Less than Standard Civil Legislation ten and you may eleven, the deposits and expenditures more than the amount covered under specifications of Government Put Insurance policies Act 1 need to be shielded in line with Standard Municipal Legislation 10(3) (Standard Municipal Rules ten, 11).

This will be in response to the query regarding your the means to access a page of credit provided by the a federal mortgage financial (hereinafter FHLB) just like the security getting state deposits

Standard Municipal Legislation 10(3) brings multiple options for securing including excessive number, including the allowed away from a keen eligible letter regarding credit, payable toward state government, as the security to your commission of a single hundred or so forty %, of your aggregate amount of societal places on local government, and you can decided appeal (Standard Municipal Law 10[c][i]). Qualified letter away from credit is defined for this purpose overall Municipal Laws 10(1)(h) in order to mean:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase not to exceed ninety days because of the 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 capital requirements (emphasis added).

Civil Loans — Deposits and you will Investment (term out of an irrevocable letter regarding credit given once the safety because of the a being qualified 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.

Standard Municipal Legislation 10(3)(c) are revised when you look at the 2002, although not, to specifically site the fresh new allowed of the local governing bodies of an irrevocable page regarding borrowing granted because of the an FHLB in order quick online direct deposit loans to secure an excessive amount of deposits (L 2002, ch 615, effective endment and renumbered established section (c) of subdivision 3 from part 10, as the newest subparagraph (c)(i).