Which advice represents this new views of one’s Office of your own State Comptroller at the time it was made

The brand new advice ong whatever else, there were further legal instances or statutory amendments you to definitely bear with the circumstances chatted about regarding the view.

Standard Civil Legislation 10(3), 11(2): The fresh new provisions out-of Standard Municipal Laws 10(1)(h) you to limit in order to ninmais aussiy days the word of a keen eligible page out-of credit issued once the cover for state government deposits and you may opportunities dont apply to an irrevocable letter regarding borrowing issued of the a being qualified government financial bank.

Especially, you may well ask whether the specifications out-of Standard Civil Law 10(1)(h) that basically restriction so you’re able to 3 months the term away from an eligible letter away from borrowing given since defense getting state deposits and opportunities pertains to an enthusiastic irrevocable letter away from borrowing provided from the a keen FHLB.

Standard Civil Legislation ten and you may 11 regulate the newest deposit and short term capital off monies from the local governments, plus areas. Under General Civil Legislation ten and you may 11, most of the dumps and opportunities more than extent covered lower than arrangements of your Government Put Insurance policies Operate step 1 need to be safeguarded relative to General Civil Rules 10(3) (General Civil Legislation ten, 11).

It is responding to the query regarding your access to a letter regarding borrowing from the bank approved because of the when should i get a variable rate loan a federal mortgage bank (hereinafter FHLB) once the protection to possess condition dumps

General Civil Law 10(3) will bring multiple options for securing such as for example extreme numbers, such as the desired out of an enthusiastic eligible letter out of credit, payable towards state government, because the defense for the percentage of a single hundred or so forty %, of the aggregate level of social dumps on local government, and you can arranged desire (General Municipal Rules 10[c][i]). Eligible letter of credit is scheduled for this purpose as a whole Civil Law 10(1)(h) in order to indicate:

[A]n irrevocable letter of credit issued in favor of the local government for a phrase to not ever surpass 90 days by 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 Fund — Places and you will Assets (term of a keen irrevocable page out-of borrowing granted since cover by a being qualified government 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.

Standard Municipal Laws 10(3)(c) are revised in 2002, although not, so you’re able to particularly site the fresh greeting by regional governments out-of a keen irrevocable letter out of credit issued of the a keen FHLB so you’re able to safe too-much deposits (L 2002, ch 615, productive endment plus renumbered existing part (c) out-of subdivision step 3 from point 10, due to the fact the fresh new subparagraph (c)(i).