N.Y. Public Authorities Law § 1681: Moneys of the authority

§ 1681. Moneys of the authority. 1. The moneys of the authority shall,

except as otherwise provided in this section, be deposited in a general

account and such other accounts as the authority may deem necessary for

the transaction of its business and shall be paid out on checks signed

by the chairman of the authority or by such other person or persons as

the authority may authorize.

2. All moneys of the authority derived from state appropriations or

the sale of bonds and all moneys constituting reserve funds shall be

paid to the comptroller of the state as agent of the authority, who

shall not commingle such moneys with other moneys. Such moneys shall be

deposited in a separate bank account or accounts. The moneys in such

accounts shall be paid out on check of the comptroller on requisition of

the chairman of the authority or of such other person or persons as the

authority may authorize to make such requisitions. All deposits of such

moneys shall, if required by the comptroller or the authority, be

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

of New York of a market value equal at all times to the amount of the

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

security for such deposits.

3. The authority shall have power notwithstanding the provisions of

this title, to contract with or for the benefit of the holders of any of

its bonds as to the custody, collection, securing, 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 other provisions of this title. In any contract with

or for the benefit of the holders of any of its bonds, the authority may

pledge or assign any moneys payable or to become payable to the

authority and, upon notification by the authority to any public officer

directed or authorized by law to pay to the authority any moneys so

pledged or assigned of the existence and the terms and conditions of

such pledge or assignment, such public officer shall thereafter pay any

such moneys otherwise payable directly to the authority in accordance

with the terms of such pledge and assignment. 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.

4. Notwithstanding any other provision of law to the contrary, the

authority shall have the power, for more efficient and economic

management of its affairs, to establish one or more accounts from which

to pay moneys and into which it may temporarily transfer moneys of the

authority held in various accounts or funds for the providing of

dormitories or other facilities and, subject to such use, maintained for

the benefit of various bond and noteholders; provided that (a) any such

account or accounts shall be under the exclusive management and control

of the authority and shall be kept separate and apart from any other

moneys or assets of the authority; (b) the authority shall keep a

separate accounting and accurate records of the various moneys to be

transferred into such account or accounts and that any moneys to be paid

from any such account to meet such liabilities of the authority shall be

derived from the appropriate account or fund held to meet such

liability; and (c) any pledge or security interest created for the

benefit of others in the moneys to be transferred into any such account

shall continue to exist while such moneys are in such account until such

moneys are paid by the authority for the appropriate contractual

liability and, prior to such payment by the authority, such moneys so

transferred shall not be subject to the claims of others who were not

previously the beneficiary of any such pledge or security interest.

5. The comptroller of the state 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, sinking funds, investments and any other

matters relating to its financial standing.