N.Y. General Municipal Law § 99-t: Contracts with banks or trust companies for the collection of water or sewer user fees, charges, rates or rentals, or certain special ass...

§ 99-t. Contracts with banks or trust companies for the collection of

water or sewer user fees, charges, rates or rentals, or certain special

assessments. 1. Notwithstanding any general, special or local law to the

contrary, a municipal corporation having the responsibility for the

collection of water or sewer user fees, charges, rates or rentals, or

special assessments which are not collected together with real property

taxes, may enter into a contract with one or more banks or trust

companies, as those terms are defined in paragraphs d and e of

subdivision one of section ten of this article, for the collection of

any or all such user fees, charges, rates or rentals, or such special

assessments. For purposes of this section, the term "special assessment"

shall have the same meaning as in subdivision fifteen of section one

hundred two of the real property tax law and shall be limited to those

special assessments not collected together with real property taxes.

2. Such bank or trust company shall collect payments of water or sewer

user fees, charges, rates or rentals, or special assessments, pursuant

to such contract, which contract shall contain provisions relating to:

(a) the period during which payments may be collected;

(b) any authorized prompt payment discounts, penalties and interest

for late payments, and acceptance of partial payments;

(c) the furnishing of receipts to each person paying such user fees,

charges, rates or rentals, or special assessments;

(d) the deposit of all such user fees, charges, rates or rentals, or

special assessments collected, immediately upon receipt, in the account

or accounts designated by the municipal corporation in such bank or

trust company, or in any other bank or trust company designated by the

municipal corporation;

(e) the maintenance of appropriate records of deposits showing the

dates and amounts of all user fees, charges, rates or rentals, or

special assessments collected, and the individuals from whom such user

fees, charges, rates or rentals, or special assessments were collected;

(f) the transmission to the appropriate municipal official of a daily

report of the user fees, charges, rates or rentals, or special

assessments collected, which report shall be accompanied by a statement

showing the deposits credited to the account of the municipal

corporation; and

(g) the performance of such other duties, and the maintenance of such

other records, as the contract may provide.

3. (a) A bank or trust company which has entered into a contract with

a municipal corporation pursuant to this section shall be liable to the

municipal corporation for all loss or damage that may result from any

failure of the bank's or trust company's officers, employees or agents

to discharge their duties, or from any improper or incorrect discharge

of those duties. The bank or trust company shall save the municipal

corporation free and harmless from any and all loss occasioned by or

incurred in the performance of services under a contract pursuant to

this section.

(b) A bank or trust company which has entered into a contract with a

municipal corporation pursuant to this section, and which receives

moneys from an individual for payment of water or sewer user fees,

charges, rates or rentals, or special assessments, shall be liable to

such individual, upon failure to properly credit such payment, for the

amount of the user fees, charges, rates or rentals, or special

assessments, plus interest and penalties imposed thereon.

4. Moneys deposited with a bank or trust company pursuant to this

section shall be secured in the manner provided by section ten of this

chapter.

5. The statutory powers and duties of the municipal officer

responsible for collecting water or sewer user fees, charges, rates or

rentals, or special assessments, including the authority to receive such

user fees, charges, rates or rentals, or special assessments shall not

be affected by the existence of a contract executed pursuant to this

section, except that such official shall:

a. notify the bank or trust company of the commencement of the

collection period for such payments;

b. include in the appropriate notices the fact that payment may be

made to the bank or trust company;

c. notify the bank or trust company of the date on which the

interest-free or penalty-free collection period expires; and

d. make the appropriate entries in the official records of the

municipal corporation, upon receiving each daily report of user fees,

charges, rates or rentals, or special assessments, collected by the bank

or trust company.

6. A contract executed pursuant to this section shall be subject to

the requirements of article five-A of this chapter, and shall be for a

term not to exceed five years, except that it shall be subject to

cancellation by the municipal corporation at any time upon thirty days

notice to the bank or trust company.