Brand new viewpoint ong anything, there were subsequent court cases or statutory amendments that happen on affairs discussed on the advice.
Standard Municipal Legislation 10(3), 11(2): The new arrangements out-of Standard Municipal Law 10(1)(h) one limitation to help you ninmais aussiy days the expression regarding an enthusiastic qualified letter out-of borrowing from the bank awarded given that safety to own state dumps and investment do not apply to an irrevocable letter from borrowing granted from the a qualifying federal financial bank.
Particularly, you may well ask perhaps the conditions regarding General Municipal Law 10(1)(h) you to basically limitation in order to 3 months the term from a keen eligible page of borrowing from the bank granted because security for local government deposits and you will opportunities relates to a keen irrevocable letter of borrowing issued because of the an enthusiastic FHLB.
Standard Civil Laws ten and you will 11 regulate the latest put and you can brief funding out of monies from the local governing bodies, and counties. Lower than Standard Municipal Rules ten and eleven, the deposits and expenditures in excess of read here the total amount covered not as much as terms of Government Deposit Insurance coverage Work 1 have to be safeguarded according to Standard Civil Law 10(3) (Standard Municipal Rules 10, 11).
That is as a result for the query about your entry to a page away from borrowing given by a national mortgage financial (hereinafter FHLB) because shelter to possess county places
Standard Civil Laws 10(3) brings multiple options for protecting such as for example excessive numbers, such as the desired regarding a keen qualified letter off credit, payable toward state government, since the security toward fee of one hundred forty percent, of your own aggregate level of social deposits about state, and you can decided attention (General Municipal Laws 10[c][i]). Qualified page off borrowing from the bank is scheduled for this specific purpose overall Municipal Law 10(1)(h) in order to imply:
[A]n irrevocable letter of credit issued in favor of the local government for a phrase not to ever meet or exceed 90 days because 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).
Municipal Financing — Deposits and you can Financial investments (name regarding an enthusiastic irrevocable letter regarding borrowing granted because cover because of the a being qualified government mortgage lender)
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) try amended inside the 2002, but not, so you’re able to especially reference brand new invited because of the local governing bodies off an irrevocable page off borrowing from the bank provided of the a keen FHLB to safer continuously places (L 2002, ch 615, effective endment and additionally renumbered present part (c) regarding subdivision step three of point 10, because the new subparagraph (c)(i).