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

§  78-b.  New  York  higher  education loan program fixed 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 fixed rate default reserve fund which   shall be for  the  exclusive  benefit  of  the  holders  of  fixed  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 fixed 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  fixed  rate  education  loans,  other  than fixed 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 fixed 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 fixed 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.