NY State Fin L § 78-A (2021)
2021 New York Laws STF - State Finance Article 6 - Funds of the State 78-A - New York Higher Education Loan Program Variable Rate Default Reserve Fund.

§  78-a.  New York higher education loan program variable rate default   reserve fund. 1. There is hereby created and  established  in  the  sole   custody  of  the state comptroller a special fund to be known as the New   York higher education loan program variable rate  default  reserve  fund   which shall be for the exclusive benefit of the holders of variable rate   education  loans  originated  pursuant  to the New York higher education   loan program codified in part V of article  fourteen  of  the  education   law,  other  than variable rate education loans described in subdivision   six  of  section  two  thousand  four  hundred  five-a  of  the   public   authorities law.2.  Amounts held in this fund shall not be, or be deemed, funds of the   state or funds under the management of the state or the higher education   services corporation. The obligations of the fund shall not  be,  or  be   deemed,  the  debts  or obligations of the state and the state shall not   be, or be deemed, in any way  obligated  to:  any  holder  of  any  such   education  loan;  any  holder  of  bonds  issued  pursuant to the public   authorities law for the purposes of the New York higher  education  loan   program;  any  fiduciary  or  provider of any credit facility, liquidity   facility or interest rate exchange agreement with respect to such bonds;   or any other creditor of this fund.3. Such fund shall consist  of  all  moneys  received  by  the  higher   education  services corporation pursuant to paragraph (b) of subdivision   seven of section  six  hundred  ninety-two  of  the  education  law,  in   connection  with  variable  rate  education  loans  made under part V of   article  fourteen  of  the  education  law,  other  than  variable  rate   education  loans  described  in  subdivision six of section two thousand   four  hundred  five-a  of  the  public  authorities   law.   The   state   comptroller,   at   the   request   of  the  higher  education  services   corporation, shall establish accounts within the fund and priorities  of   payment  from such accounts and shall invest the fund in compliance with   applicable state laws concerning the investment of public funds.  Moneys   in  the  fund shall be segregated from all other funds kept by the state   comptroller and shall not be used for any other purpose beyond those set   forth in part V of article fourteen of the  education  law  or  in  this   section.4.  The state comptroller shall make payments from the fund in amounts   and at times required  by  the  higher  education  services  corporation   pursuant   to   part  V  of  article  fourteen  of  the  education  law.   Notwithstanding subdivision one of this section, upon  certification  by   the  State  of  New  York mortgage agency that a variable rate education   loan described in subdivision three of this section has been acquired by   the agency or has become subject to  the  agreement  of  the  agency  to   acquire  such education loan, the state comptroller shall make transfers   from the monies in the variable rate  New  York  higher  education  loan   program  default  reserve  fund  to the corporation for deposit into the   state of New York mortgage agency New York higher education loan program   default reserve fund created by subdivision six of section two  thousand   four  hundred  five-a of the public authorities law in amounts certified   by the  agency  and  the  corporation  as  properly  allocable  to  such   education loan.