N.Y. State Finance Law § 65: Appointment of fiscal agent or trustee; powers and duties

§ 65. Appointment of fiscal agent or trustee; powers and duties. 1.

Notwithstanding any other provisions of this chapter, the comptroller,

on behalf of the state, may contract from time to time for a period or

periods not exceeding ten years each, except in the case of a bank or

trust company agreeing to act as issuing, paying and/or tender agent

with respect to a particular issue of variable interest rate bonds in

which case the comptroller, on behalf of the state, may contract for a

period not to exceed the term of such particular issue of bonds, with

one or more banks or trust companies located in the city of New York, to

act as fiscal agent, trustee, or agents of the state, and for the

maintenance of an office for the registration, conversion, reconversion

and transfer of the bonds and notes of the state, including the

preparation and substitution of new bonds and notes, for the payment of

the principal thereof and interest thereon, for related services, and to

otherwise effectuate the powers and duties of a fiscal agent or trustee

on behalf of the state in all such respects as may be determined by the

comptroller for such bonds and notes, and for the payment by the state

of such compensation therefor as the comptroller may determine. Any such

fiscal agent or trustee may, where authorized pursuant to the terms of

its contract, accept delivery of obligations purchased by the state and

of securities deposited with the state pursuant to sections one hundred

five and one hundred six of this chapter and hold the same in

safekeeping, make delivery to purchasers of obligations sold by the

state, and accept deposit of such proceeds of sale without securing the

same. Any such contract may also provide that such fiscal agent or

trustee may, upon the written instruction of the comptroller, deposit

any obligations or securities which it receives pursuant to such

contract, in an account with a federal reserve bank, to be held in such

account in the form of entries on the books of the federal reserve bank,

and to be transferred in the event of any assignment, sale, redemption,

maturity or other disposition of such obligations or securities, by

entries on the books of the federal reserve bank. Any such bank or trust

company shall be responsible to the people of this state for the

faithful and safe conduct of the business of said office, for the

fidelity and integrity of its officers and agents employed in such

office, and for all loss or damage which may result from any failure to

discharge their duties, and for any improper and incorrect discharge of

those duties, and shall save the state free and harmless from any and

all loss or damage occasioned by or incurred in the performance of such

services. Any such contract may be terminated by the comptroller at any

time. In the event of any change in any office maintained pursuant to

any such contract, the comptroller shall give public notice thereof in

such form as he may determine appropriate.

2. The comptroller shall prescribe rules and regulations for the

registration, conversion, reconversion and transfer of the bonds and

notes of the state, including the preparation and substitution of new

bonds, for the payment of the principal thereof and interest thereon,

and for other authorized services to be performed by such fiscal agent

or trustee. Such rules and regulations, and all amendments thereof,

shall be prepared in duplicate, one copy of which shall be filed in the

office of the department of audit and control and the other in the

office of the department of state. A copy thereof may be filed as a

public record in such other offices as the comptroller may determine.

Such rules and regulations shall be obligatory on all persons having any

interests in bonds and notes of the state heretofore or hereafter

issued.