The new thoughts ong whatever else, there have been next judge instances otherwise statutory amendments you to definitely happen with the affairs discussed regarding the viewpoint.

General Civil Rules 10(3), 11(2): Brand new specifications regarding Standard Municipal Law 10(1)(h) you to restrict in order to 3 months the expression out-of a keen eligible letter out of borrowing awarded given that cover getting state deposits and expenditures do not affect an irrevocable page out-of credit approved from the a qualifying government mortgage bank.

Particularly, you ask whether the arrangements out of General Municipal Legislation 10(1)(h) you to definitely fundamentally limit in order to 3 months the definition of out of a keen eligible page of borrowing issued given that coverage having state deposits and you may financial investments applies who has lowest personal loan rates to an enthusiastic irrevocable page of borrowing issued by an enthusiastic FHLB.

Standard Civil Rules ten and you can 11 regulate the fresh new deposit and you can temporary money from funds because of the local governments, also counties. Below General Civil Legislation ten and you may 11, all the deposits and you may investment over the total amount covered not as much as specifications of your Government Deposit Insurance rates Act step one must be secured prior to General Civil Rules 10(3) (Standard Civil Law ten, 11).

That is responding on the inquiry regarding the entry to a letter of credit provided because of the a national home loan lender (hereinafter FHLB) as coverage to own county dumps

Standard Municipal Laws 10(3) will bring multiple alternatives for securing such as excess numbers, for instance the desired regarding an enthusiastic eligible letter out-of credit, payable towards state, since safety to the percentage of just one hundred forty %, of aggregate quantity of societal dumps on state government, and you will decided attention (Standard Civil Legislation 10[c][i]). Qualified page of borrowing from the bank is placed for this reason generally speaking Civil Law 10(1)(h) so you can imply:

[A]n irrevocable letter of credit issued in favor of the local government for a term not to surpass 3 months by 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).

Civil Financing — Dumps and you will Investment (term out of a keen irrevocable page out-of borrowing from the bank issued as the security from the a qualifying federal financial 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) was amended inside the 2002, not, in order to specifically source the brand new acceptance from the regional governments regarding a keen irrevocable letter out of borrowing awarded from the an FHLB to help you safer excess places (L 2002, ch 615, active endment also renumbered existing part (c) out-of subdivision step three off section 10, as the the latest subparagraph (c)(i).