N.Y. Public Authorities Law § 2663: Monies of the authority

§ 2663. Monies of the authority. 1. All monies of the authority from

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

and shall be deposited forthwith in a bank or banks designated by the

authority. The monies in such accounts shall be paid out or withdrawn on

the order of such person or persons as the authority may authorize to

make such requisitions. All deposits of such monies shall be secured by

obligations of the United States or of the state or of any municipality

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. To the extent practicable, consistent with the cash

requirements of the authority, all such monies shall be deposited in

interest bearing accounts. The authority shall have power,

notwithstanding the provisions of this section, to contract with the

holders of any bonds as to the custody, collection, security, investment

and payment of any monies of the authority or any monies held in trust

or otherwise for the payment of bonds or any way to secure bonds, and

carry out any such contract notwithstanding that such contract may be

inconsistent with the provisions of this section. Monies held in trust

or otherwise for the payment of bonds or in any way to secure bonds and

deposits of such monies may be secured in the same manner as monies of

the authority and all banks and trust companies are authorized to give

such security for such deposits. Any monies of the authority not

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

authority, be invested pursuant to section ninety-eight-a of the state

finance law in accordance with guidelines established by the authority's

board and amended from time to time. Subject to the provisions of any

contract with bondholders and with the approval of the state

comptroller, the authority shall prescribe a system of accounts.

2. Tax revenues received by the authority pursuant to section twelve

hundred ten-C of the tax law, shall be applied in the following order of

priority: first pursuant to the authority's contracts with bondholders,

then to pay the authority's operating expense not otherwise provided

for, and then the balance of such taxes not required to meet contractual

or other obligations of the authority shall be deposited in the general

fund of the authority.