So it viewpoint is short for the new viewpoints of your own Office of one’s State Comptroller at that time it was made

This new advice ong anything else, there were after that legal instances or statutory amendments one incur into the issues chatted about throughout the thoughts.

General Civil Legislation 10(3), 11(2): The latest provisions off General Civil Law 10(1)(h) you to maximum to ninainsi quey days the word regarding an enthusiastic eligible page from credit issued because the safety to possess state places and expenditures dont apply at an irrevocable letter out-of credit granted by the a qualifying government financial financial.

Particularly, you ask whether the specifications out-of Standard Municipal Law 10(1)(h) that fundamentally limitation to ninety days the word out of a keen eligible page out-of credit issued since the safety to have state government places and you will opportunities applies to an irrevocable letter off borrowing given of the an FHLB.

Standard Municipal Legislation 10 and you may 11 control brand new put and you may short term capital of funds by regional governing bodies, and counties. Lower than General Civil Legislation ten and you may eleven, all the dumps and you can investment in excess of the total amount insured lower than terms of the Federal how do you get a va loan Deposit Insurance rates Act step one have to be safeguarded according to Standard Municipal Rules 10(3) (General Municipal Laws 10, 11).

This will be in response toward inquiry concerning your entry to a page from borrowing provided by a national mortgage lender (hereinafter FHLB) because the defense to possess condition dumps

General Municipal Legislation 10(3) provides numerous alternatives for securing instance continuously wide variety, for instance the desired from an enthusiastic qualified letter away from credit, payable on state, just like the defense on percentage of just one hundred or so forty percent, of one’s aggregate number of societal places about local government, and you may decided focus (General Civil Legislation 10[c][i]). Eligible page away from credit is defined for this purpose generally speaking Civil Legislation 10(1)(h) so you can imply:

[A]n irrevocable letter of credit issued in favor of the local government for an expression never to exceed 3 months by 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 Finance — Dumps and you can Opportunities (term out-of an enthusiastic irrevocable letter off credit provided because coverage by the a qualifying federal 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 Law 10(3)(c) are amended inside 2002, but not, to especially reference brand new anticipate because of the regional governing bodies regarding a keen irrevocable page away from borrowing provided because of the an FHLB so you can secure too much deposits (L 2002, ch 615, effective endment along with renumbered current section (c) out-of subdivision 3 of area ten, given that the fresh new subparagraph (c)(i).