The newest view ong whatever else, there were further court cases or legal amendments you to sustain toward activities talked about regarding the thoughts.

General Civil Laws 10(3), 11(2): The fresh arrangements out-of Standard Municipal Laws 10(1)(h) one restriction to 3 months the word off a keen qualified page out-of credit granted once the defense for state government deposits and investment do not apply at a keen irrevocable page away from borrowing given of the a qualifying federal home loan bank.

Particularly, you may well ask whether the provisions away from General Municipal Legislation 10(1)(h) one essentially limitation to ninety days the expression regarding a keen qualified page out of borrowing given while the cover getting local government dumps and assets applies to an irrevocable page of borrowing approved by the a keen FHLB.

Standard Civil Laws ten and you can eleven control the brand new put and you may short term money away from monies by the local governing bodies, in addition to counties. Lower than Standard Civil Legislation ten and you will eleven, the deposits and you can expenditures over the amount covered below terms of the Government Deposit Insurance Operate step 1 should be safeguarded in accordance with General Civil Law 10(3) (Standard Municipal Law 10, 11).

This is certainly responding to the inquiry regarding your the means to access a page off borrowing from the bank issued by the a federal financial bank (hereinafter FHLB) since coverage getting condition deposits

Standard Municipal Law 10(3) will bring numerous options for securing like too-much wide variety, such as the greeting away from a keen eligible page of credit, payable for the local government, due to the fact security into the fee of a single hundred forty per cent, of your own aggregate quantity of public dumps from the local government, and you can arranged focus (General Civil Law 10[c][i]). Qualified letter off borrowing from the bank is defined for this specific purpose typically Civil Legislation 10(1)(h) in order to mean:

[A]n irrevocable letter of credit issued in favor of the local government for a term not to ever meet or exceed 90 days by a lender (other than the bank with which the money is being deposited or invested) whose commercial paper additional reading 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 Financing — Deposits and you may Investments (identity out of a keen irrevocable page out of credit issued due to the fact security by the a being qualified 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.

Standard Municipal Laws 10(3)(c) is actually amended during the 2002, although not, so you can especially reference the latest greeting of the regional governments off an irrevocable letter off borrowing from the bank provided from the an enthusiastic FHLB in order to secure a lot of dumps (L 2002, ch 615, effective endment in addition to renumbered established section (c) off subdivision 3 regarding section 10, once the the newest subparagraph (c)(i).