N.Y. State Finance Law § 98-a: Investment of general funds, bond proceeds, and other funds not immediately required

§ 98-a. Investment of general funds, bond proceeds, and other funds

not immediately required. 1. Except as otherwise provided in subdivision

two of this section, any moneys in the general fund of the state or

moneys received from the sale of any bonds or notes issued by the state,

any moneys in any fund or account of the state, heretofore or hereafter

established, the investment of which is not otherwise authorized and

which are not immediately required may be invested by the comptroller.

Such moneys may be invested only in obligations of the categories

specified in subdivisions one to five, both inclusive, and subdivision

seven, subdivision fourteen, as added by chapters seven hundred

ninety-seven and nine hundred thirty-two of the laws of nineteen hundred

sixty-three, respectively, subdivisions fifteen, sixteen and seventeen

of section ninety-eight of this article, maturing or redeemable at the

option of the holder within twelve years of the date of such investment,

subdivisions two-a, eighteen, nineteen and twenty of section

ninety-eight of this article or in a certificate of deposit of a bank or

trust company in this state. Any certificate of deposit shall be fully

secured by the issuer thereof depositing with the comptroller stocks,

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

school district of this state issued pursuant to law and maturing within

five years from the date of issuance of such certificate of deposit,

bonds or notes or direct or guaranteed obligation of the United States

of America or its agencies or of the state of New York or bonds and

notes issued for any of the corporate purposes of the municipal

assistance corporation for the city of New York in an amount equal to

the amount of such certificate of deposit. Any bonds, notes or

certificates of deposit purchased with moneys of the general fund shall

be available always to pay any lawful appropriation in force. Any bonds,

notes or certificates of deposit purchased with moneys received from the

sale of any bonds or notes issued by the state shall be available always

for the purposes or purpose for which such bonds or notes were issued.

Any bonds, notes or certificates of deposit purchased with moneys of any

other funds shall be available always for the purpose for which such

fund was created. Unless otherwise required by law, income received on

any moneys invested pursuant to this section shall be credited to the

fund or funds from which such moneys were invested, provided, however,

the comptroller is hereby precluded from crediting interest earnings to

funds/accounts which:

(a) are funded entirely from the general fund; or

(b) are, or were, authorized to receive temporary loans pursuant to

subdivision five of section four of the state finance law; or

(c) are federal funds, except such funds which are required to earn

such interest pursuant to a court order or federal law or regulation; or

(d) are agency funds, except such funds which are held pending the

outcome of litigation or are required to earn interest pursuant to a

court order, contractual obligation, or state or federal law or

regulation, or are appropriated.

Notwithstanding the provisions of paragraph (b) of this subdivision,

the comptroller shall credit or charge interest to fund/accounts which

are authorized to receive temporary loans if so requested by the state

department or division responsible for such fund/account within thirty

days of the beginning of each fiscal year or thirty days following the

final approval of any bill containing language authorizing such

temporary loans, whichever is later, and interest must be credited or

charged from the first day of such fiscal year. Within ten days of the

beginning of each month, the comptroller shall credit or charge interest

to such funds/accounts based upon the average daily balance of the

preceding month of such funds/accounts and shall provide notification to

the director of the budget and the chairs of the senate finance and

assembly ways and means committees of such funds/accounts to be credited

or charged interest.

Provided, however, that income received from the investment of moneys

of the local assistance account, the state purposes account and the

capital projects fund may be credited in whole or in part to one or more

of such funds to the extent necessary to reimburse first instance

appropriations for interest on temporary obligations issued on behalf of

the fund or funds to be credited. Notwithstanding any other provision of

this section or of any other general or special law, all moneys

available and retained on deposit for the payment of lottery prizes may

be invested in obligations by the comptroller as herein provided, except

that such obligations need not mature or be redeemable at the option of

the holder within seven years of the date of such investment. Income

received from such investments may be used for the payment of prizes

awarded and made payable in more than one payment, including prizes

awarded and made payable throughout the lifetime of the lottery prize

winner.

2. Notwithstanding any provision of law to the contrary, investment of

bond proceeds and other funds not immediately required may be invested

by the comptroller in linked deposits pursuant to article fifteen of

this chapter. If any moneys are invested by the comptroller in linked

deposits pursuant to article fifteen of this chapter, the comptroller

shall compute the monthly earnings for all funds, other than the general

fund, as if no such moneys had been invested in such linked deposits.