Which advice means the fresh new feedback of Workplace of County Comptroller at that time it had been made

New viewpoint ong anything, there have been further legal times otherwise statutory amendments that bear to your issues talked about from the thoughts.

Standard Municipal Rules 10(3), 11(2): The newest arrangements away from General Civil Legislation 10(1)(h) you to definitely restrict so you can 3 months the word away from an eligible page from borrowing from the bank given once the cover for local government deposits and you will financial investments dont apply to an enthusiastic irrevocable letter of borrowing given of the a being qualified federal mortgage lender.

Especially, you may well ask whether the conditions away from General Civil Rules 10(1)(h) one to essentially limitation to help you 3 months the definition of off an qualified letter away from borrowing granted since cover for local government places and you will assets applies to an enthusiastic irrevocable letter regarding credit approved by the an enthusiastic FHLB.

Standard Civil Laws 10 and 11 regulate this new put and short term financing of funds of the regional governing bodies, and additionally counties. Under Standard Municipal Rules ten and 11, all deposits and you will assets more than the total amount insured lower than arrangements of the Government Put Insurance coverage Work step 1 need to be secure in line with Standard Civil Laws 10(3) (Standard Municipal Laws ten, 11).

This will be in reaction with the query concerning your the means to access a page of borrowing granted from the a federal home loan bank (hereinafter FHLB) just like the coverage to possess condition places

cash tax advance

Standard Municipal Legislation 10(3) will bring several choices for securing such as for instance an excessive amount of amounts, for instance the welcome away from an eligible letter Windsor installment loans away from borrowing from the bank, payable with the local government, as coverage to your fee of 1 hundred or so 40 per cent, of aggregate quantity of public places about state government, and you can agreed upon desire (General Civil Laws 10[c][i]). Eligible letter off borrowing from the bank is set for this purpose in general Municipal Law 10(1)(h) so you’re able to suggest:

[A]n irrevocable letter of credit issued in favor of the local government for a term not to ever go beyond ninety days 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 Funds — Deposits and you may Expenditures (title from a keen irrevocable page out of borrowing provided while the safeguards by the a qualifying government financial 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 Law 10(3)(c) is actually amended for the 2002, however, so you’re able to particularly reference this new acceptance because of the regional governing bodies from an enthusiastic irrevocable letter from credit given from the an FHLB in order to safe too-much deposits (L 2002, ch 615, effective endment along with renumbered present section (c) out of subdivision 3 out of point ten, as the the latest subparagraph (c)(i).

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