N.Y. Public Authorities Law § 1232-j: Moneys of the authority

§ 1232-j. Moneys of the authority. All moneys of the authority from

whatever source derived shall be paid to the treasurer of the authority

and shall be deposited forthwith in such bank or banks in the state

designated by the governing body. Moneys derived from charges by the

authority related to sewerage services shall be kept separate and shall

not be commingled with moneys from charges by the authority related to

storm water resources services. The moneys in such accounts shall be

paid out on check of the treasurer upon requisition by the governing

body or of such other person or persons as the governing body may

authorize to make such requisitions. All deposits of such moneys shall

be secured by obligations of the United States or of the state or of the

county of a market value equal at all times to the amount on deposit,

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

for such deposits. The authority shall have the power, notwithstanding

any other provisions of this section, to contract with the holders of

any 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. Any moneys of the authority not

required for immediate use or disbursement may, at the discretion of the

authority, be invested in those obligations specified pursuant to the

provisions of section ninety-eight-a of the state finance law.

Notwithstanding any other provision of this title to the contrary, for

the purpose of any such contract with the holders of any bonds, any

moneys of the authority from whatever source derived may be used in

whole or in part for the payment of bonds or in any way to secure bonds,

and to carry out any such contract. Provided however, that any monies

derived from charges by the authority related to sewerage services or

storm water resources services shall continue to be accounted for with

respect to their source and any such monies which are used for the

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

contract with the holders of any bonds, shall be accounted for

separately after reduction by an amount equal to the portion thereof

applied to the payment of debt service, reserve requirements, if any,

and other costs associated with bond-related payments. Subject to the

provisions of any contract with bondholders and with the approval of the

comptroller, the authority shall prescribe a system of accounts.