It opinion signifies the brand new views of Place of work of one’s Condition Comptroller at the time it was made

The latest view ong other things, there had been further courtroom times otherwise legal amendments one happen to your products discussed regarding opinion.

Standard Municipal Laws 10(3), 11(2): This new specifications of General Municipal Law 10(1)(h) one to limitation in order to ninmais aussiy days the expression of an enthusiastic qualified page out-of borrowing from the bank awarded because cover to possess state deposits and you will investment dont connect with an enthusiastic irrevocable page of credit given by a qualifying government financial bank.

Especially, you may well ask perhaps the conditions out-of Standard Civil Law 10(1)(h) you to fundamentally restriction in order to ninety days the phrase regarding an enthusiastic qualified letter out of borrowing from the bank given just like the protection to possess local government places and you can investments pertains to an irrevocable page out of borrowing approved of the an enthusiastic FHLB.

General Civil Legislation 10 and you may eleven regulate the brand new put and you can short-term resource off funds of the regional governments, and areas. Less than Standard Civil Rules ten and you may eleven, all places and you will investment over extent covered lower than provisions of the Government Deposit Insurance Operate step one should be shielded in line with Standard Civil Legislation 10(3) (Standard Municipal Rules 10, 11).

This might be as a result toward query about your the means to access a letter away from credit provided of the a national mortgage lender (hereinafter FHLB) as the protection to own condition places

General Civil Laws 10(3) provides numerous alternatives for securing such as for instance excess number, for instance the desired off an qualified page out of borrowing, payable on the state government, as coverage into percentage of 1 hundred or so 40 %, of the aggregate number of societal deposits from the state, and you will agreed upon notice (Standard Civil Law 10[c][i]). Eligible page from borrowing is defined for this purpose as a whole Civil Legislation 10(1)(h) in order to indicate:

[A]n irrevocable letter of credit

issued in favor of the local government for a term to not surpass ninety days because 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).

Civil Money — Dumps and you may Investment (term away from an irrevocable page from borrowing given given that safeguards by the a being qualified federal financial 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 Civil Law 10(3)(c) is actually amended in the 2002, not, in order to particularly reference this new enjoy by regional governing bodies off an enthusiastic irrevocable page away from credit provided of the an enthusiastic FHLB so you’re able to safer too-much deposits (L 2002, ch 615, productive endment as well as renumbered current paragraph (c) from subdivision step three out of part ten, while the the fresh subparagraph (c)(i).