The fresh viewpoint ong whatever else, there are then legal times otherwise legal amendments you to incur on issues talked about regarding advice.
General Municipal Law 10(3), 11(2): The new specifications out of General Civil Law 10(1)(h) one limit to help you 3 months the term of a keen qualified page off borrowing from the bank issued because the cover for local government places and expenditures dont affect an irrevocable page from borrowing from the bank issued of the a being qualified federal mortgage bank.
Particularly, you ask whether or not the specifications regarding Standard Civil Laws 10(1)(h) one generally limit to help you 90 days the phrase regarding a keen qualified page from borrowing given while the cover to own local government dumps and you can assets applies to an enthusiastic irrevocable page of credit awarded from the an enthusiastic FHLB.
General Civil Rules ten and you will eleven govern the fresh new deposit and you will short term capital from funds by the local governments, also counties. Under General Civil Law ten and you may 11, all dumps and you will assets in excess of extent insured less than specifications of your own Federal Deposit Insurance rates Act step 1 have to be secure prior to Standard Municipal Legislation 10(3) (General Civil Rules 10, 11).
This can be in reaction for the inquiry regarding the access to a letter away from credit provided by the a federal financial bank (hereinafter FHLB) given that defense to have state dumps
Standard Municipal Laws 10(3) will bring multiple choices for securing such as for instance extreme number, like the invited off an qualified page away from borrowing, payable into state government, as security toward fee of 1 hundred forty %, of your aggregate quantity of social dumps in the state government, and you can arranged desire (General Municipal Laws 10[c][i]). Qualified letter away from credit is set for this specific purpose generally Civil Laws 10(1)(h) to suggest:
[A]n irrevocable letter of credit issued in favor of the local government for a phrase to not exceed 3 months because of 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] installment loan Kingston OK with applicable federal minimum risk-based capital requirements (emphasis added).
Municipal Funds — Dumps and you can Assets (label regarding an irrevocable letter out-of credit provided while the defense of the a qualifying government home loan 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 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 Legislation 10(3)(c) are revised inside the 2002, although not, so you’re able to particularly site the invited from the local governing bodies regarding an irrevocable page regarding borrowing approved by an enthusiastic FHLB so you’re able to secure excess deposits (L 2002, ch 615, effective endment and additionally renumbered current section (c) of subdivision step three away from part 10, since the brand new subparagraph (c)(i).