N.Y. Public Authorities Law § 2927: Investment of funds by public authorities and public benefit corporations in deposits insured by the federal deposit insurance corporation

§ 2927. Investment of funds by public authorities and public benefit

corporations in deposits insured by the federal deposit insurance

corporation.

Notwithstanding any inconsistent provision of this chapter or any

other general, special or local law, every corporation whether or not

such corporation is otherwise governed by this chapter, may temporarily

invest moneys not required for immediate expenditure in accordance with

the following conditions:

1. the moneys are invested through a bank or trust company located and

authorized to do business in this state selected by the corporation;

2. the selected bank or trust company arranges for the redeposit of

the moneys in certificates of deposit and other deposit accounts in one

or more banking institutions, as defined in section nine-r of the

banking law, for the account of the corporation;

3. the full amount of principal and accrued interest of each such

deposit is insured by the federal deposit insurance corporation;

4. the selected bank or trust company in this state acts as custodian

for the corporation with respect to the funds redeposited pursuant to

this section; and

5. at the same time that the corporation's moneys are redeposited

pursuant to this section, the selected bank or trust company in this

state receives an amount of deposits from customers of other financial

institutions equal to or greater than the amount of the moneys invested

by the corporation through the selected bank or trust company in this

state.