That it advice signifies the latest viewpoints of your Place of work of the County Comptroller at the time it was made

The fresh opinion ong anything else, there had been further legal cases otherwise legal amendments one sustain towards points chatted about about advice.

Standard Civil Laws 10(3), 11(2): The fresh terms out of General Civil Law 10(1)(h) you to restriction to 3 months the expression away from an eligible letter off borrowing from the bank given as coverage getting state dumps and you can investment do not affect a keen irrevocable letter from borrowing from the bank issued by a qualifying government mortgage bank.

Especially, you may well ask perhaps the specifications from General Municipal Laws 10(1)(h) you to definitely basically limit so you’re able to 3 months the term away from an eligible letter regarding borrowing issued once the safeguards having local government dumps and you can opportunities relates to an enthusiastic irrevocable letter regarding borrowing awarded by the an FHLB.

Standard Civil Rules ten and you may eleven govern this new deposit and you will brief funding of funds from the regional governing bodies, and counties. Around Standard Civil Laws 10 and you can eleven, every deposits and opportunities over the amount insured not as much as provisions of your Federal Deposit Insurance policies Work 1 should be safeguarded relative to General Civil Rules 10(3) (Standard Civil Law ten, 11).

This is in response on the query concerning your use of a page away from borrowing awarded from the a national mortgage financial (hereinafter FHLB) given that cover getting county places

Standard Civil Legislation 10(3) brings multiple alternatives for securing for example excessively number, including the anticipate off an eligible page out of borrowing from the bank, payable toward state, given that safety for the fee of one hundred 40 percent, of your own aggregate number of social deposits in the state, and you can arranged appeal (General Civil Laws 10[c][i]). Eligible letter away from borrowing is defined for this function typically Civil Laws 10(1)(h) to imply:

[A]n irrevocable letter of credit issued in favor of the local government for a term not to surpass ninety days because of the a bank (other than the bank with which the money is being deposited Atlanta installment loans no credit check 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 Opportunities (label out-of an irrevocable page regarding borrowing provided since cover by 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.

General Municipal Laws 10(3)(c) are amended in the 2002, however, to help you especially source this new greet of the local governing bodies of a keen irrevocable letter out of borrowing awarded from the an enthusiastic FHLB in order to safer continuously places (L 2002, ch 615, energetic endment along with renumbered existing section (c) from subdivision step 3 out-of section ten, because the this new subparagraph (c)(i).