The view ong whatever else, there are after that judge circumstances or legal amendments that happen to the affairs discussed regarding the opinion.
General Municipal Legislation §§10(3), 11(2): The fresh terms out-of General Civil Legislation §10(1)(h) you to limitation to help you ninmais aussiy days the definition of off a keen “qualified page from borrowing” granted because coverage to own state government deposits and you will assets don’t apply to an irrevocable letter of borrowing from the bank awarded from the a qualifying federal home loan financial.
Especially, you ask if the conditions away from General Municipal Law §10(1)(h) you to definitely fundamentally restrict so you’re able to 3 months the word out-of an enthusiastic “qualified page out of credit” provided as the shelter to have state government dumps and you can expenditures applies to a keen irrevocable page away from credit given because of the an FHLB.
General Civil Legislation §§10 and you can eleven govern this new put and short term funding regarding funds by local governments, and additionally counties. Around Standard Civil Law §§10 and you will eleven, every dumps and investments over the amount insured less than conditions of one’s Federal Deposit Insurance coverage Work 1 have to be safeguarded prior to Standard Municipal Laws §10(3) (General Civil Laws §§ ten, 11).
This is certainly in response into the query concerning your access to a letter of borrowing given of the a national home loan lender (hereinafter “FHLB”) since protection having condition places
General Municipal Legislation §10(3) provides numerous options for securing eg an excessive amount of quantity, such as the enjoy regarding an “qualified page out of borrowing from the bank”, payable for the local government, while the security “into fee of one hundred forty per cent, http://elitecashadvance.com/payday-loans-ca/oasis of your own aggregate amount of personal dumps” throughout the local government, and you may agreed upon attention (General Municipal Rules § 10[c][i]). “Qualified letter out of borrowing” is scheduled for this specific purpose in general Civil Rules §10(1)(h) so you’re able to imply:
[A]n irrevocable letter of credit issued in favor of the local government for a term not to ever go beyond 90 days by 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] with applicable federal minimum risk-based capital requirements (emphasis added).
Civil Loans — Deposits and you may Opportunities (term out of an enthusiastic irrevocable letter out-of borrowing from the bank given given that defense of the a qualifying government financial 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.
General Municipal Legislation § 10(3)(c) try revised into the 2002, but not, so you’re able to especially site the fresh new acceptance by local governing bodies from a keen “irrevocable page out of credit” issued of the an enthusiastic FHLB so you’re able to secure excessive deposits (L 2002, ch 615, effective endment in addition to renumbered current paragraph (c) out of subdivision 3 out of point 10, due to the fact the fresh subparagraph (c)(i).
