N.Y. Banking Law § 107-a: Security for public deposits

§ 107-a. Security for public deposits. 1. As used in this section, the

following terms shall have the following meanings:

(a) "Public depositary". A bank, trust company or other depositary,

whether state or federally chartered, authorized to accept and hold

deposits of public funds under the laws of this state.

(b) "Public funds". Funds of a political subdivision.

(c) "Political subdivision". Any municipal corporation, school

district, board of cooperative educational services, district

corporation, special improvement district governed by a separate board

of commissioners or a public library.

(d) "Public deposits". Deposits of public funds in a public depositary

which are available for all uses generally permitted by the public

depositary to the depositing political subdivision for actually and

finally collected funds under the public depositary's account agreement

or policies.

2. Whenever a political subdivision is required by any general or

special law to obtain a pledge of assets or other security from a public

depositary for its public deposits and such political subdivision has

entered into a written agreement with such public depositary relating to

such public deposits and has provided written notice in a form specified

by such written agreement to the public depositary of such public

deposits, the public depositary shall comply with the provisions of such

law at the time it accepts any public deposits from the political

subdivision; provided, however, that where the public depositary and

political subdivision have agreed in writing as to the maximum amount of

security which such depositary shall provide, and the terms, conditions

and timing of the provisions of security pursuant thereto, and the

depositary has at all times complied with such agreement, it shall be

deemed to have complied with the provisions of such law for so long as

it shall comply with such agreement.