Brand new advice ong other things, there are further courtroom cases or statutory amendments you to definitely incur towards issues talked about about opinion.

General Municipal Law 10(3), 11(2): The new terms off Standard Civil Laws 10(1)(h) you to definitely restriction in order to ninmais aussiy days the term out of a keen qualified page of credit awarded once the cover getting state deposits and you may financial investments do not apply to an irrevocable letter off borrowing from the bank approved of the a being qualified government financial lender.

Especially, you ask whether or not the conditions regarding Standard Municipal Law 10(1)(h) you to definitely basically maximum to 90 days the definition of regarding a keen qualified letter of credit issued once the defense to own state places and you can assets applies to a keen irrevocable letter regarding borrowing from the bank granted by a keen FHLB.

General Civil Law 10 and you can 11 control the latest deposit and you may brief funding from funds by the local governments, in addition to counties. Around Standard Civil Law ten and eleven, most of the deposits and you may investments over the amount covered around arrangements of the Government Put Insurance coverage Work step 1 should be secure in line with Standard Civil Legislation 10(3) (Standard Civil Legislation ten, 11).

It is responding on inquiry about your access to a page out-of borrowing from the bank approved of the a national mortgage bank (hereinafter FHLB) as protection to possess county places

Standard Municipal Laws 10(3) will bring several alternatives for securing including excessively amounts, such as the welcome off a keen qualified page off borrowing, payable into the local government, while the cover towards the percentage of just one hundred 40 per cent, of your own aggregate amount of social deposits about state, and you may arranged appeal (General Civil Legislation 10[c][i]). Eligible page of borrowing is scheduled for this specific purpose in general Municipal Legislation 10(1)(h) to mean:

[A]n irrevocable letter of credit issued in favor of the local government for an expression not to exceed 3 months 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 installment loans no credit check Modesto IL 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 Money — Dumps and Financial investments (identity away from an enthusiastic irrevocable letter out of borrowing approved because the shelter by the a being qualified federal 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.

General Municipal Laws 10(3)(c) was amended for the 2002, yet not, to specifically resource the anticipate by the local governments from an irrevocable letter of credit granted by the an enthusiastic FHLB in order to secure too-much deposits (L 2002, ch 615, energetic endment as well as renumbered established paragraph (c) out of subdivision 3 out-of part 10, since new subparagraph (c)(i).