It viewpoint signifies the fresh feedback of Office of County Comptroller at that time it actually was rendered

The opinion ong whatever else, there have been after that legal instances or statutory amendments that sustain for the items talked about on the advice.

Standard Municipal Rules §§10(3), 11(2): Brand new provisions off Standard Municipal Law §10(1)(h) one to limitation so you can ninmais aussiy days the phrase out-of an enthusiastic “eligible page from borrowing” awarded as the coverage getting state places and you can assets do not apply at a keen irrevocable page out-of borrowing from the bank issued by the a qualifying government mortgage bank.

Specifically, you may well ask whether the terms off General Municipal Legislation §10(1)(h) that fundamentally limit to help you ninety days the phrase away from an “qualified page away from credit” provided since security for state government places and you will expenditures relates to an irrevocable letter from credit granted by the an enthusiastic FHLB.

Standard Municipal Legislation §§ten and you may 11 regulate the brand new put and you may short-term funding of monies because of the local governments, together with counties. Not as much as Standard Municipal Laws §§ten and eleven, all dumps and you can financial investments in excess of the total amount covered around arrangements of one’s Federal Put Insurance Operate step 1 should be shielded according to General Civil Legislation §10(3) (Standard Civil Laws §§ 10, 11).

This might be responding into the query concerning your entry to a letter off credit given because of the a federal financial lender (hereinafter “FHLB”) since defense having state dumps

General Civil Legislation §10(3) brings several choices for protecting for example excess numbers, for instance the enjoy regarding a keen “eligible letter out-of borrowing”, payable toward state government, given that cover “to your percentage of just one hundred or so forty per cent, of one’s aggregate quantity of public places” regarding state, and you will decided focus (General Municipal Legislation § 10[c][i]). “Qualified letter away from borrowing” is defined for this function generally speaking Municipal Legislation §10(1)(h) to help you imply:

[A]n irrevocable letter of credit issued in favor of the local government for a term to not ever exceed netspend prepaid card loans 90 days from the a bank (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 Funds — Deposits and you may Assets (title out of an irrevocable letter away from borrowing issued once the safety by a being qualified government home loan 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 Civil Law § 10(3)(c) is actually amended inside the 2002, yet not, in order to specifically site this new allowed by the regional governments out-of an enthusiastic “irrevocable page of borrowing” awarded because of the a keen FHLB to safe a lot of deposits (L 2002, ch 615, energetic endment also renumbered established section (c) away from subdivision 3 regarding point 10, since the fresh subparagraph (c)(i).