NY State Fin L § 106 (2021)
2021 New York Laws STF - State Finance Article 7 - Accounts and Audits 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.