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So it view represents the viewpoints of one’s Work environment of County Comptroller during the time it absolutely was rendered

So it view represents the viewpoints of one’s Work environment of County Comptroller during the time it absolutely was rendered

New viewpoint ong whatever else, there are next court circumstances otherwise legal amendments you to definitely sustain on issues chatted about on the view.

Standard Civil Rules 10(3), 11(2): The newest arrangements away from Standard Municipal Law 10(1)(h) that limit in order to 90 days the word regarding an eligible page from borrowing issued since safeguards having local government places and you will opportunities do not apply at an irrevocable letter from borrowing from the bank granted from the a qualifying federal mortgage lender.

Particularly, you may well ask if the terms out-of General Civil Legislation 10(1)(h) one to basically restrict to help you ninety days the term from a keen qualified page of credit issued given that shelter for state government deposits and you may financial investments applies to a keen irrevocable page out-of credit approved from the a keen FHLB.

General Civil Laws 10 and you will eleven control the fresh deposit and you can short term funding away from funds of the regional governing bodies, and additionally counties. Around Standard Civil Law ten and you may eleven, all the dumps and you may expenditures in excess of the amount covered less than terms of your Government Put Insurance rates Operate 1 should be covered in accordance with General Civil Rules 10(3) (Standard Civil Law ten, 11).

This is certainly in reaction toward query concerning your usage of a page out of borrowing granted by a national home loan financial (hereinafter FHLB) since safety for condition deposits

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General Municipal Laws 10(3) brings numerous choices for protecting eg too much number, including the allowed regarding an enthusiastic qualified page regarding borrowing from the bank, payable towards state government, as security on percentage of a single hundred 40 percent, of your aggregate number of personal dumps on the state, and agreed upon attract (Standard Municipal Laws 10[c][i]). Qualified letter regarding borrowing is defined for this specific purpose overall Civil Laws 10(1)(h) to indicate:

[A]n irrevocable letter of credit issued in favor of the local government for an expression not to ever exceed 90 days by 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).

Civil Funds — Places and you will Expenditures (title away from a keen irrevocable letter away from borrowing provided since coverage of the a being qualified government financial bank)

For purposes of General Municipal Law 10, a bank is defined to mean a national banking association (see 12 USC 21 et seq.) or installment loans in Hammond 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 Laws 10(3)(c) is actually amended in the 2002, yet not, so you’re able to especially resource the latest enjoy from the local governments off a keen irrevocable letter off borrowing from the bank provided because of the an FHLB to help you safe continuously deposits (L 2002, ch 615, energetic endment together with renumbered established part (c) from subdivision step three regarding part ten, while the the fresh new subparagraph (c)(i).

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