N.Y. GMU Law § 99-T — New York Code / Act GMU / Article 5 / Section 99-T
Contracts with banks or trust companies for the collection of water or sewer user fees, charges, rates or rentals, or certain special ass...
Status: in_force

§ 99-t. Contracts with banks or trust companies for the collection of\nwater or sewer user fees, charges, rates or rentals, or certain special\nassessments. 1. Notwithstanding any general, special or local law to the\ncontrary, a municipal corporation having the responsibility for the\ncollection of water or sewer user fees, charges, rates or rentals, or\nspecial assessments which are not collected together with real property\ntaxes, may enter into a contract with one or more banks or trust\ncompanies, as those terms are defined in paragraphs d and e of\nsubdivision one of section ten of this article, for the collection of\nany or all such user fees, charges, rates or rentals, or such special\nassessments. For purposes of this section, the term "special assessment"\nshall have the same meaning as in subdivision fifteen of section one\nhundred two of the real property tax law and shall be limited to those\nspecial assessments not collected together with real property taxes.\n  2. Such bank or trust company shall collect payments of water or sewer\nuser fees, charges, rates or rentals, or special assessments, pursuant\nto such contract, which contract shall contain provisions relating to:\n  (a) the period during which payments may be collected;\n  (b) any authorized prompt payment discounts, penalties and interest\nfor late payments, and acceptance of partial payments;\n  (c) the furnishing of receipts to each person paying such user fees,\ncharges, rates or rentals, or special assessments;\n  (d) the deposit of all such user fees, charges, rates or rentals, or\nspecial assessments collected, immediately upon receipt, in the account\nor accounts designated by the municipal corporation in such bank or\ntrust company, or in any other bank or trust company designated by the\nmunicipal corporation;\n  (e) the maintenance of appropriate records of deposits showing the\ndates and amounts of all user fees, charges, rates or rentals, or\nspecial assessments collected, and the individuals from whom such user\nfees, charges, rates or rentals, or special assessments were collected;\n  (f) the transmission to the appropriate municipal official of a daily\nreport of the user fees, charges, rates or rentals, or special\nassessments collected, which report shall be accompanied by a statement\nshowing the deposits credited to the account of the municipal\ncorporation; and\n  (g) the performance of such other duties, and the maintenance of such\nother records, as the contract may provide.\n  3. (a) A bank or trust company which has entered into a contract with\na municipal corporation pursuant to this section shall be liable to the\nmunicipal corporation for all loss or damage that may result from any\nfailure of the bank's or trust company's officers, employees or agents\nto discharge their duties, or from any improper or incorrect discharge\nof those duties. The bank or trust company shall save the municipal\ncorporation free and harmless from any and all loss occasioned by or\nincurred in the performance of services under a contract pursuant to\nthis section.\n  (b) A bank or trust company which has entered into a contract with a\nmunicipal corporation pursuant to this section, and which receives\nmoneys from an individual for payment of water or sewer user fees,\ncharges, rates or rentals, or special assessments, shall be liable to\nsuch individual, upon failure to properly credit such payment, for the\namount of the user fees, charges, rates or rentals, or special\nassessments, plus interest and penalties imposed thereon.\n  4. Moneys deposited with a bank or trust company pursuant to this\nsection shall be secured in the manner provided by section ten of this\nchapter.\n  5. The statutory powers and duties of the municipal officer\nresponsible for collecting water or sewer user fees, charges, rates or\nrentals, or special assessments, including the authority to receive such\nuser fees, charges, rates or rentals, or special assessments shall not\nbe affected by the existence of a contract executed pursuant to this\nsection, except that such official shall:\n  a. notify the bank or trust company of the commencement of the\ncollection period for such payments;\n  b. include in the appropriate notices the fact that payment may be\nmade to the bank or trust company;\n  c. notify the bank or trust company of the date on which the\ninterest-free or penalty-free collection period expires; and\n  d. make the appropriate entries in the official records of the\nmunicipal corporation, upon receiving each daily report of user fees,\ncharges, rates or rentals, or special assessments, collected by the bank\nor trust company.\n  6. A contract executed pursuant to this section shall be subject to\nthe requirements of article five-A of this chapter, and shall be for a\nterm not to exceed five years, except that it shall be subject to\ncancellation by the municipal corporation at any time upon thirty days\nnotice to the bank or trust company.\n