This new opinion ong anything, there were subsequent court times or statutory amendments that happen toward activities chatted about from the viewpoint.
General Municipal Legislation 10(3), 11(2): The brand new provisions out-of General Civil Laws 10(1)(h) one to restriction so you can 90 days the definition of out-of an enthusiastic eligible page out-of borrowing from the bank awarded due to the fact shelter getting local government dumps and you will opportunities do not affect an enthusiastic irrevocable letter off credit granted from the a being qualified government financial financial.
Especially, you may well ask whether the arrangements of General Civil Rules 10(1)(h) you to generally limitation to 90 days the definition of out of an enthusiastic eligible letter away from borrowing provided given that safety to possess local government dumps and you will expenditures pertains to an enthusiastic irrevocable page out-of borrowing from the bank given of the an installment loans no credit check San Jose NM FHLB.
Standard Municipal Legislation 10 and you can 11 govern this new deposit and you will short-term financing from funds because of the regional governments, including counties. Lower than General Municipal Law ten and eleven, all the places and you can opportunities over extent insured under arrangements of your own Federal Put Insurance rates Operate step one should be secure relative to General Civil Rules 10(3) (Standard Civil Rules 10, 11).
This is in response into query about your entry to a letter off borrowing from the bank approved by a federal financial financial (hereinafter FHLB) because the coverage getting county places
General Municipal Laws 10(3) will bring numerous options for protecting particularly too-much wide variety, including the invited from an enthusiastic qualified letter regarding borrowing from the bank, payable with the local government, because the cover to the fee of one hundred or so 40 percent, of the aggregate amount of societal places in the state, and you may agreed upon desire (General Municipal Rules 10[c][i]). Qualified page from borrowing from the bank is scheduled for this specific purpose generally speaking Municipal Legislation 10(1)(h) to help you suggest:
[A]n irrevocable letter of credit issued in favor of the local government for a term to not meet or exceed 3 months by 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 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 Finance — Dumps and you may Financial investments (name out-of an enthusiastic irrevocable letter out of credit issued since the protection by a being qualified government mortgage 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 amended for the 2002, but not, so you’re able to particularly reference the newest greeting by the regional governing bodies regarding an irrevocable page out of borrowing from the bank issued because of the an enthusiastic FHLB so you’re able to secure too-much deposits (L 2002, ch 615, active endment plus renumbered current paragraph (c) of subdivision 3 away from area ten, while the the fresh new subparagraph (c)(i).