N.Y. Public Authorities Law § 1186: Moneys of the authority

§ 1186. Moneys of the authority. All moneys of the authority, from

whatever source derived, shall be paid to the treasurer as agent of the

authority, who shall not commingle such moneys with any other moneys.

Such moneys shall be deposited by the treasurer in one or more banks or

trust companies in a special account or accounts, and if the treasurer

or the authority shall so require, each of such special accounts shall

be continuously secured by a pledge of direct obligations of the United

States of America or of the state of New York having an aggregate market

value, exclusive of accrued interest, at all times at least equal to the

balance on deposit in such account. Such securities shall either be

deposited with the treasurer or be held by a trustee or agent

satisfactory to the authority. In lieu of any such pledge of such

securities, such funds may be secured by a surety bond or bonds which

shall be in form, sufficiency and substance satisfactory to the

authority. All banks and trust companies are authorized to give such

security for such deposits. The moneys in such accounts shall be paid

out on the warrant or check of the comptroller as agent of the authority

on requisition of the chairman of the authority, or of such other person

or persons as the authority may authorize to make such requisitions,

after audit by the comptroller. The comptroller and his legally

authorized representatives are hereby 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 matters relating to its finances, operation

and affairs.

The authority shall have power, notwithstanding the provisions of this

section, to contract with the holders of any of its bonds as to the

custody, collection, security, investment and payment of any moneys of

the authority, or any moneys held in trust or otherwise for the payment

of bonds or in any way to secure bonds, and to carry out any such

contract notwithstanding that such contract may be inconsistent with the

provisions of this section. Moneys held in trust or otherwise for the

payment of bonds or in any way to secure bonds and deposits of such

moneys may be secured in the same manner as moneys of the authority, and

all banks and trust companies are authorized to give such security for

such deposits.