This opinion means the brand new feedback of one’s Work environment of the County Comptroller at the time it had been made

This opinion means the brand new feedback of one’s Work environment of the County Comptroller at the time it had been made

The brand new view ong other things, there were further courtroom times otherwise statutory amendments one to bear towards the points discussed on opinion.

Standard Civil Rules §§10(3), 11(2): The brand new conditions of Standard Municipal Laws §10(1)(h) one maximum to help you 90 days the word off an “eligible letter off borrowing from the installment loans in Carolina WV with bad credit bank” issued once the security to own local government places and opportunities do not connect with an irrevocable letter of borrowing from the bank approved by a being qualified federal mortgage lender.

Particularly, you may well ask if the terms of Standard Civil Laws §10(1)(h) that essentially restriction so you’re able to ninety days the phrase out of an “qualified letter from borrowing” provided due to the fact coverage for local government places and investment pertains to an irrevocable letter out of borrowing issued from the a keen FHLB.

Standard Municipal Laws §§10 and you can eleven govern the brand new put and temporary resource off funds by regional governing bodies, also counties. Around Standard Civil Rules §§10 and you can 11, all of the deposits and you can expenditures over extent insured significantly less than terms of Federal Deposit Insurance Work step 1 have to be secure according to General Civil Laws §10(3) (Standard Civil Laws §§ ten, 11).

This can be as a result toward inquiry regarding the usage of a letter regarding borrowing issued because of the a national mortgage lender (hereinafter “FHLB”) since safeguards having condition deposits

General Civil Rules §10(3) brings several options for securing such as for instance extreme number, such as the allowed regarding a keen “qualified letter out of borrowing”, payable into local government, since security “into commission of just one hundred or so forty %, of one’s aggregate number of societal dumps” on the state, and arranged attract (General Civil Law § 10[c][i]). “Qualified page away from borrowing from the bank” is set for this function generally speaking Municipal Rules §10(1)(h) to suggest:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase not to meet or exceed 90 days 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 Loans — Places and you will Expenditures (label out of an enthusiastic irrevocable letter of credit awarded just like the defense of the 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.

Standard Municipal Law § 10(3)(c) is actually amended in the 2002, yet not, so you can particularly resource the new invited by the local governing bodies out of a keen “irrevocable page off borrowing from the bank” given by the a keen FHLB so you can safer excessive dumps (L 2002, ch 615, productive endment and additionally renumbered present section (c) away from subdivision 3 of section 10, due to the fact new subparagraph (c)(i).

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