The latest thoughts ong whatever else, there were subsequent courtroom instances otherwise statutory amendments one incur to your activities discussed on the view.
Standard Civil Laws §§10(3), 11(2): New terms away from Standard Municipal Legislation §10(1)(h) you to definitely maximum to 90 days the term out-of an enthusiastic “qualified letter of borrowing from the bank” given since the safeguards to possess local government deposits and you will financial investments do not affect a keen irrevocable letter out-of borrowing provided from the a qualifying federal home loan bank.
Specifically, you may well ask whether or not the provisions of Standard Municipal Law §10(1)(h) one essentially restrict in order to 90 days the word from a keen “qualified letter regarding borrowing same day payday loans no phone calls from the bank” granted just like the protection to have state government places and you will investment pertains to an enthusiastic irrevocable letter away from borrowing from the bank given from the an enthusiastic FHLB.
Standard Municipal Laws §§ten and eleven govern the newest put and you may short-term capital out of monies by local governing bodies, and additionally counties. Under Standard Municipal Law §§10 and you may eleven, most of the dumps and you can investments more than extent covered not as much as conditions of your Government Put Insurance rates Operate 1 should be secure relative to Standard Municipal Rules §10(3) (General Municipal Laws §§ 10, 11).
This might be as a result on the query about your entry to a page of borrowing from the bank provided of the a federal financial lender (hereinafter “FHLB”) as the cover for county places
General Municipal Law §10(3) brings several alternatives for protecting particularly an excessive amount of wide variety, including the desired of a keen “eligible letter out of credit”, payable on state, due to the fact safety “to your commission of 1 hundred or so forty percent, of aggregate number of personal dumps” from the state government, and decideded upon notice (Standard Municipal Laws § 10[c][i]). “Qualified letter regarding credit” is set for this reason generally Municipal Legislation §10(1)(h) to help you mean:
[A]n irrevocable letter of credit issued in favor of the local government for a phrase never to surpass ninety days from 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).
Civil Finance — Places and you can Investment (label regarding a keen irrevocable letter away from borrowing awarded as protection from the a being qualified government home loan lender)
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 revised in 2002, although not, to particularly reference the greet because of the regional governments out-of an enthusiastic “irrevocable letter regarding borrowing” awarded by the an enthusiastic FHLB so you can secure too much places (L 2002, ch 615, productive endment together with renumbered current part (c) of subdivision step 3 of part 10, while the new subparagraph (c)(i).