The viewpoint ong other things, there have been further courtroom circumstances or legal amendments one to sustain toward products chatted about from the viewpoint.
General Civil Law §§10(3), 11(2): Brand new conditions out of General Municipal Law §10(1)(h) one to limit so you’re able to ninmais aussiy days the phrase away from a keen “eligible letter of borrowing from the bank” granted while the safeguards to have local government dumps and you may investments don’t apply at an enthusiastic irrevocable letter out-of borrowing issued by a qualifying government home loan financial.
Specifically, you may well ask if the conditions from General Municipal Law §10(1)(h) you to generally restrict so you can 3 months the definition of away from a keen “qualified letter out of borrowing” awarded since the shelter for state government deposits and investment relates to an irrevocable page away from borrowing from the bank approved from the an enthusiastic FHLB.
Standard Civil Laws §§10 and you will 11 control this new deposit and you will brief investment regarding funds by the regional governing bodies, along with counties. Significantly less than General Civil Legislation §§ten and you can eleven, the places and you can investments in excess of extent insured around terms of one’s Federal Deposit Insurance rates Operate step one have to be covered according to General Municipal Laws §10(3) (General Municipal Rules §§ ten, 11).
This is exactly responding towards inquiry regarding your the means to access a letter regarding borrowing granted from the a national mortgage bank (hereinafter “FHLB”) once the security getting condition deposits
General Municipal Legislation §10(3) brings several choices for protecting instance excessively numbers, including the greeting regarding an enthusiastic “qualified page from credit”, payable to your local government, due to the fact safeguards “to your payment of a single hundred or so 40 per cent, of your own aggregate amount of societal deposits” regarding local government, and you may arranged attention (General Municipal Laws § 10[c][i]). “Eligible letter out-of credit” is placed for this reason typically Civil Legislation §10(1)(h) to help you imply:
[A]n irrevocable letter of credit issued in favor of the local government for a phrase not to ever go beyond 90 days because 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 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 monthly installment loans Hamilton ND 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 Money — Deposits and you will Assets (title away from a keen irrevocable page regarding borrowing issued 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.
Standard Civil Legislation § 10(3)(c) is amended when you look at the 2002, yet not, so you can specifically site the brand new anticipate from the regional governments off an enthusiastic “irrevocable page of borrowing” granted from the a keen FHLB in order to safe way too much dumps (L 2002, ch 615, active endment along with renumbered current part (c) from subdivision step three regarding part ten, while the the latest subparagraph (c)(i).