N.Y. State Finance Law § 78: New York state college choice tuition savings program trust fund

§ 78. New York state college choice tuition savings program trust

fund. 1. There is hereby established in the sole custody of the state

comptroller a special fund to be known as the New York state college

choice tuition savings program trust fund. All payments from such fund

shall be made in accordance with article fourteen-A of the education law

and the memorandum of understanding entered into pursuant thereto on the

audit of the state comptroller.

2. The fund shall be a trust fund and shall consist of a trust account

and an operating account. The trust account shall include amounts

received by the New York state college choice tuition savings program

pursuant to tuition savings agreements, administrative charges, fees,

and all other amounts received by the program from other sources, and

interest and investment income earned by the trust fund. The comptroller

shall, from time to time, make transfers from the trust account to the

operating account for the immediate payment of obligations under tuition

savings agreements, operating expenses and administrative costs of the

New York state college choice tuition savings program. Administrative

costs shall be paid out of the operating account according to the terms

and conditions established pursuant to the provisions of section six

hundred ninety-five-c of the education law.

3. (a) The comptroller, as trustee, shall invest the assets of the

trust fund with the care, skill, prudence and diligence under the

circumstances then prevailing that a prudent person acting in a like

capacity and familiar with such matters would use in the conduct of an

enterprise of a like character and with like aims.

(b) Trust fund assets shall be kept separate and shall not be

commingled with other assets, except as provided herein. The comptroller

may enter into contracts to provide for investment advice and

management, custodial services, and other professional services for the

administration and investment of the program. Administrative fees, costs

and expenses, including investment fees and expenses, shall be paid from

the assets of the fund.

4. The comptroller shall provide for the administration of the trust

fund, including maintaining participant records and accounts, and

providing annual audited reports. The comptroller may enter into

contracts to provide administrative services and reporting.