NY State Fin L § 78 (2021)
2021 New York Laws STF - State Finance Article 6 - Funds of the State 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 in investments authorized by article four-A of the retirement and social security law, provided however, that:  (i)  the provisions of paragraph (a) of subdivision two of section one hundred seventy-seven of the retirement and social  security  law  shall not  apply  except  for  the  first  clause of subparagraph (ii) of such paragraph; and  (ii) notwithstanding the provisions of subdivision  seven  of  section one  hundred  seventy-seven of the retirement and social security law or any other law to the contrary, the assets  of  the  trust  fund  may  be invested  in  any  funding  agreement  issued in accordance with section three thousand two hundred twenty-two of the insurance law by a domestic life insurance  company  or  a  foreign  life  insurance  company  doing business in this state, subject to the following:  (1) such a funding agreement may provide for a guaranteed minimum rate of return;  (2)  such  a  funding  agreement may be allocated as either a separate account or a general account of  the  issuer,  as  the  comptroller  may decide;  (3)  total investments of the trust fund pursuant to this paragraph in any funding agreements issued by a single life insurance  company  which are  allocated  as  a  general  account  of the issuer shall not, in the aggregate, exceed three hundred fifty million dollars; and  (4) no assets of the trust fund shall be invested in any such  funding agreement   unless,   at  the  time  of  such  investment,  the  general obligations or financial strength of the issuer have received either the highest or second highest rating by  two  nationally  recognized  rating services  or  by  one  nationally recognized rating service in the event that only one such service rates such obligations.  (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.