N.Y. Public Authorities Law § 1021-e: Deposit and investment of moneys of the authority

§ 1021-e. Deposit and investment of moneys of the authority. 1. All

moneys of the authority, from whatever source derived, except as

otherwise authorized or provided in this title, shall upon receipt be

deposited forthwith in a bank or banks designated by the directors, to

be selected in accordance with such standards as the directors shall set

forth in the by-laws or investment guidelines of the authority, which

standards shall take into account the creditworthiness and capital

position of the depositary bank or banks. The moneys in such accounts

may be invested in obligations of the state or the United States, or

guaranteed by either in accordance with practices that the directors

shall set forth in the by-laws or investment guidelines of the

authority. The moneys in such accounts shall be withdrawn on the order

of such person or persons as the directors shall authorize in the

by-laws of the authority and shall be applied to the use of the

authority as the directors shall authorize in the by-laws of the

authority. All deposits of such moneys shall be secured in accordance

with section twenty-nine hundred twenty-five of this chapter. The state

comptroller and his legally authorized representatives are authorized

and empowered from time to time to examine the accounts and books of the

authority, including its receipts, disbursements, contracts, leases,

sinking funds, investments and any other records and papers relating to

its financial standing; the authority shall not be required to pay a fee

for any such examination.

2. The authority shall have power to contract with holders of any of

its bonds or notes or other obligations, or any trustee therefor, as to

the custody, collection, securing, investment and payment of any moneys

of the authority and of any moneys held in trust or otherwise for the

payment of bonds or notes or other obligations, and to carry out any

such contract. Moneys held in trust or otherwise for the payment of

bonds or notes or other obligations or in any way to secure bonds or

notes or obligations and deposits of such moneys shall be secured in

full in direct obligations of the federal government the payment of

which is guaranteed by the United States of America. Such investments

shall be held on deposit only in banks having a minimum credit rating

and a minimum accumulated capital, as the directors shall specify in the

by-laws or investment guidelines of the authority.

3. Subject to agreements with noteholders and bondholders or any

trustee therefor, the authority shall prescribe a uniform system of

accounts in accordance with generally accepted accounting principles.

4. The directors shall adopt investment guidelines and standards to

implement the foregoing provisions of this section, which guidelines and

standards shall be reviewed annually by the directors and shall be made

available to state and municipal officials and to the public.