N.Y. State Finance Law § 105: Deposits in banks

§ 105. Deposits in banks. 1. All moneys received by the commissioner

of taxation and finance on account of the state, excepting such moneys

as are required by law to be deposited to the credit of the comptroller,

but including such moneys as are thereafter paid into the state treasury

by the comptroller, shall be deposited by the commissioner of taxation

and finance within three business days after the receipt thereof, either

as a demand deposit or an interest-bearing time deposit (other than a

time certificate of deposit), as the commissioner and the comptroller

may determine, in such banks, trust companies and industrial banks as in

the opinion of the commissioner and the opinion of the comptroller are

secure. The moneys so deposited shall be placed to the account of the

commissioner of taxation and finance. The commissioner shall keep a

bankbook in which shall be entered their account of deposit in and

moneys drawn from the banks and trust companies and industrial banks in

which deposits are made by the commissioner, which they shall exhibit to

the comptroller for inspection on the first Tuesday of every month and

oftener if required. The commissioner shall not draw any moneys from

such banks, trust companies or industrial banks unless by checks signed

and countersigned in the manner prescribed by section one hundred one,

unless otherwise provided by law. No moneys shall be paid by any such

bank, trust company or industrial bank out of any such deposit except

upon such checks. Moneys may be paid through electronic transfer in

accordance with procedures developed by the commissioner of taxation and

finance and the comptroller and consistent with the requirements of this

section for recording payments. Such payments through electronic

transfer shall be considered, for purposes of this chapter, to be moneys

drawn by check. Every such bank, trust company or industrial bank shall

transmit to the comptroller monthly statements of all moneys received

and paid by it on account of the commissioner of taxation and finance.

2. Every bank, trust company and industrial bank designated for the

deposit of state moneys under the provisions of this section shall,

before deposits are made:

a. Execute and file with the commissioner of taxation and finance a

bond to the state in such form and with such surety or sureties for such

sums as may be prescribed and approved by the commissioner of taxation

and finance and comptroller, for the safekeeping and prompt payment of

such moneys on legal demand therefor with interest, if any; or

b. In lieu of such surety bond, with the permission of the comptroller

and the commissioner of taxation and finance, deposit with the

comptroller outstanding unmatured:

(1) bonds or notes of the United States of America, or obligations,

the payment of which is guaranteed by the United States of America,

(2) bonds or notes of the state of New York,

(3) bonds or notes of any county, town, city, village, fire district

or school districts in the state of New York authorized to be issued by

law,

(4) bonds of the Port of New York Authority of any year,

(5) bonds of the Buffalo and Fort Erie Public Bridge Authority,

(6) bonds of the Triborough bridge and tunnel authority,

(7) bonds or notes of the New York state thruway authority,

(8) bonds, notes or other obligations of any municipal housing

authority in the state of New York authorized to be issued by law,

provided such bonds, notes or other obligations qualify under the

provisions of section forty-nine of the public housing law,

(9) bonds or notes of the Power Authority of the state of New York,

(10) bonds or notes of the Niagara Frontier Port Authority,

(11) bonds or notes of the Dormitory Authority of the state of New

York,

(12) bonds or notes of the New York state bridge authority,

(13) bonds or notes issued for any of the corporate purposes of the

New York state housing finance agency,

(14) bonds or notes of the Metropolitan Commuter Transportation

Authority,

(15) bonds or notes of the New York State Pure Waters Authority, for

which the commissioner of taxation and finance and the comptroller shall

deliver a certificate of deposit containing the conditions of such

deposit,

(16) bonds or notes of the Niagara Frontier Transportation Authority,

(17) bonds or notes of the Rochester-Genesee Regional Transportation

Authority,

(18) bonds or notes of the Capital District Transportation Authority,

(19) bonds or notes of the Central New York Regional Transportation

Authority,

20 Bonds or notes of the New York state project finance agency,

(21) Bonds or notes of the municipal assistance corporation for the

city of New York,

(22) bonds or notes issued for any of the corporate purposes of the

New York state medical care facilities finance agency, for which the

commissioner of taxation and finance and the comptroller shall deliver a

certificate of deposit containing the conditions of such deposit, or

(23) irrevocable letters of credit issued by a federal home loan bank.

c. With the permission of the comptroller and commissioner of taxation

and finance execute and file with the commissioner of taxation and

finance an undertaking to the effect that such bank, trust company or

industrial bank will safely keep and promptly pay over all such deposits

on legal demand therefor with interest, if any, and as collateral to

such undertaking deposit with the comptroller a certified check or

checks drawn on and certified by the federal reserve bank within the

state payable to his order in such amount or amounts as shall be agreed

upon by the comptroller and the depositary.

3. Notwithstanding any other general or special law, no bonds, notes

or other obligations, except as above described, shall be accepted as

security for moneys deposited pursuant to this section or section one

hundred six of this chapter. No general or special law which in

substance or in effect authorizes or requires the deposit of specified

bonds, notes or other obligations with any public officer or body of

this state for any purpose for which the deposit of bonds or other

obligations of this state may be authorized or required, shall be

construed to authorize or require the acceptance of such bonds, notes or

other obligations as security for moneys deposited pursuant to this

section or section one hundred six of this chapter.

4. The comptroller and the commissioner of taxation and finance may,

in their discretion, accept and substitute for any surety bond or

undertaking given, pursuant to this section, a bond or undertaking in

such form and with other surety or sureties, or other security as

required by this section, for such sums as may be prescribed and

approved by the comptroller and the commissioner of taxation and finance

for the safe keeping and prompt payment of such moneys on legal demand

therefor with interest, if any, and the comptroller and the commissioner

of taxation and finance may thereupon execute and deliver to the surety

or sureties, upon the former bond or undertaking, a release of such

surety or sureties from any liability accruing subsequent to the date of

such release. Such release shall not relieve such surety or sureties

from any obligation for losses incurred prior to the date thereof.

5. On the withdrawal of all moneys from any such depositary and a

closing and settlement of the account thereof, the commissioner of

taxation and finance and the comptroller may in their discretion certify

to such settlement and direct the release of such surety bond,

undertaking, certified check or checks, or other security to the

obligors or owner or owners entitled thereto.

6. The state comptroller, public authorities or public benefit

corporations of the state, and the commissioner of taxation and finance

may deposit public funds with a bank, trust company or national bank

located in a banking development district designated pursuant to section

ninety-six-d of the banking law. Subject to an agreement between such

body or officer and such bank, trust company or national bank located in

a banking development district, any such deposits made by the state or

any of its public authorities or public benefit corporations may earn a

fixed interest rate which is at or below such banking institution's

posted two year certificate of deposit rate.