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Which advice means the latest feedback of the Work environment of one’s Condition Comptroller at that time it had been rendered

Which advice means the latest feedback of the Work environment of one’s Condition Comptroller at that time it had been rendered

This new advice ong other things, there were further court instances or statutory amendments you to definitely happen toward products chatted about on advice.

Standard Municipal Rules 10(3), 11(2): The terms out-of Standard Municipal Legislation 10(1)(h) you to restriction to 3 months the expression off a keen qualified letter of borrowing from the bank granted given that protection to possess state deposits and you may assets dont apply at an irrevocable page regarding borrowing given by a being qualified federal financial lender.

Especially, you may well ask whether or not the arrangements off Standard Municipal Law 10(1)(h) one fundamentally limitation to help you 3 months the phrase off a keen qualified letter of credit awarded while the safeguards having state government deposits and you will investment pertains to an irrevocable page out of borrowing approved of the an enthusiastic FHLB.

Standard Civil Laws ten and you will eleven control new put and you will short-term funding off monies by the local governing bodies, together with counties. Around General Civil Laws 10 and you will 11, installment loans in Indianapolis IN with bad credit all deposits and opportunities over extent covered lower than provisions of the Federal Deposit Insurance Act step one should be secure according to Standard Civil Law 10(3) (General Municipal Laws ten, 11).

This is certainly responding for the inquiry concerning your usage of a letter out of borrowing approved of the a national mortgage bank (hereinafter FHLB) because security to possess state places

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General Municipal Legislation 10(3) will bring several options for securing such excessive number, for instance the invited out-of an eligible page from borrowing from the bank, payable on state government, as the shelter to the payment of 1 hundred 40 per cent, of your own aggregate amount of social deposits regarding the state government, and you may agreed upon interest (Standard Municipal Legislation 10[c][i]). Eligible letter out-of borrowing from the bank is placed for this specific purpose overall Civil Law 10(1)(h) so you can mean:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase never to meet or exceed 3 months 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).

Municipal Funds — Deposits and you can Financial investments (label out-of an irrevocable letter regarding borrowing from the bank granted as the safeguards from the a being qualified government mortgage 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.

General Civil Legislation 10(3)(c) are amended in the 2002, however, to help you especially site the brand new desired by local governments off an irrevocable page away from borrowing provided by the a keen FHLB so you can safer an excessive amount of deposits (L 2002, ch 615, active endment in addition to renumbered current section (c) out of subdivision 3 off part 10, as the brand new subparagraph (c)(i).

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