N.Y. State Finance Law § 106: Deposit of moneys by state officers, state institutions and charitable and benevolent institutions

§ 106. Deposit of moneys by state officers, state institutions and

charitable and benevolent institutions. Such moneys received by the

commissioner of taxation and finance as are now deposited to the credit

of the comptroller pursuant to statute, and thereafter paid into the

state treasury, shall be deposited by him or her to the credit of the

comptroller in such bank or trust company as shall be designated by the

comptroller at such rate of interest, if any, as shall be agreed upon by

the depositary and the comptroller.

All other moneys received by the commissioner of taxation and finance

except as provided in section one hundred five of this article and all

moneys received by any other state officer or other person receiving

moneys belonging to the state, or for which such state officer or other

person may be responsible in his or her official capacity, and all

moneys received by any state institution, except for moneys received

pursuant to a clinical practice plan established pursuant to subdivision

fourteen of section two hundred six of the public health law and all

moneys received from the state by any charitable or benevolent

institution supported in whole or in part by the state, shall be

deposited to his, her, or its credit in such bank or trust company as

shall be designated by the comptroller at such rate of interest, if any,

as shall be agreed upon by the depositary and the comptroller.

Every bank or trust company designated by the comptroller for the

deposit of any such moneys

A. Shall give a bond with sufficient sureties for the security of such

deposit, to be approved by the comptroller and filed in his or her

office,

B. Or shall, in lieu of such surety bond, with the permission of the

comptroller deposit with the comptroller such outstanding unmatured

bonds or notes or such certified check or checks as are described in

section one hundred five of this article. The comptroller may, in his or

her 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 for the safe keeping and prompt payment of such moneys on

legal demand therefor with interest, if any, and the comptroller 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. On the withdrawal of all moneys from

any such depository and a closing and settlement of the account thereof,

the comptroller may in his or her discretion certify to such settlement

and release to the obligor or owner or owners entitled thereto, of such

surety bond, undertaking, certified check or checks, or other security

deposited with him or her.

C. Notwithstanding any other provisions of this section, the

comptroller shall not designate for the deposit of moneys by state

officers, state institutions and charitable and benevolent institutions

supported in whole or in part by the state a banking institution to

which the Community Reinvestment Act of 1977, United States P.L. 95-128,

applies unless such institution shall have received a record of

performance no lower than "satisfactory" as determined under such act in

accordance with section twenty-eight-b of the banking law.

D. In lieu of a security bond as prescribed under subdivision A of

this section or other security as prescribed under subdivision B of this

section, the comptroller may authorize a designated bank or trust

company to arrange for the redeposit of the moneys through a deposit

placement program that meets all of the following conditions:

(1) The designated bank or trust company arranges for the redeposit of

the moneys into deposit accounts with one or more banking institutions,

as defined in section nine-r of the banking law, for the account of the

state, and serves as custodian for the state with respect to the moneys

redeposited into such deposit accounts.

(2) Moneys held by a designated bank or trust company pending

redeposit pursuant to paragraph one of this subdivision that are in

excess of the amount insured by the federal deposit insurance

corporation shall be secured in accordance with subdivision A or B of

this section.

(3) The full amount of the moneys redeposited into deposit accounts

pursuant to paragraph one of this subdivision, plus accrued interest, if

any, shall be insured by the federal deposit insurance corporation.

(4) At the same time that the moneys are redeposited pursuant to

paragraph one of this subdivision, the designated bank or trust company

receives an amount of deposits from customers of other financial

institutions pursuant to the deposit placement program that are at least

equal to the amount of the moneys redeposited by the designated bank or

trust company.

This section shall not apply to any funds held by the superintendent

of financial services in a fiduciary capacity.