N.Y. Public Authorities Law § 3013: Moneys of a municipal assistance corporation

§ 3013. Moneys of a municipal assistance corporation. 1. All moneys of

a corporation from whatever source derived may be paid to the treasurer

of the corporation and be deposited forthwith in a bank or banks in the

state designated by such corporation. The moneys in such account may be

paid by the treasurer or other agent duly designated by the corporation

on requisition of the chairman of the board of directors of the

municipal assistance corporation or of such person or persons as the

corporation may authorize to make such requisitions. All deposits of

such moneys, may, if required by the corporation, be secured by

obligations of the United States 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,

provided, however, that no funds or accounts held in the capital reserve

fund may be invested in obligations of or guaranteed by the municipality

being assisted or of any of its agencies. Such obligations may either be

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

satisfactory to the corporation. The comptroller and his legally

authorized representatives are authorized and empowered from time to

time to examine the accounts and books of the corporation, including its

receipts, disbursements, contracts, leases, sinking funds, investments

and any other records and papers relating to its financial standing.

2. Subject to the provisions of subdivision three of this section, any

moneys of a corporation, including the proceeds of notes or bonds, not

required for immediate use may be invested in obligations of the

municipality being assisted or in obligations of the state or federal

government, obligations of the principal of and interest on which are

guaranteed by such municipality, the state or federal government, or

obligations of agencies of such municipality, of the state or of the

federal government which may, from time to time, be legally purchased by

savings banks of the state as investment of funds belonging to them, or

in secured time deposit or other interest-bearing accounts secured by

such obligations; provided, however, that no funds held in a capital

reserve fund may be invested in obligations of or guaranteed by the

municipality being assisted or of any of its agencies.

3. A corporation shall have power to contract with holders of any of

its notes or bonds as to the custody, collection, securing, investment,

and payment of any moneys of the corporation, of any moneys held in

trust or otherwise for the payment of notes or bonds, and to carry out

such contract. Moneys held in trust or otherwise for the payment of

notes or bonds or in any way to secure notes or bonds or notes and

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

the corporation, and all banks and trust companies are authorized to

give such security for such deposits.

4. Subject to the provisions of any contract with noteholders or

bondholders and to the approval of the comptroller, the corporation

shall prescribe a system of accounts.