NY State Fin L § 105 (2021)
2021 New York Laws STF - State Finance Article 7 - Accounts and Audits 105 - Deposits in Banks.

§  105.  Deposits in banks. 1. All moneys received by the commissioner of taxation and finance on account of the state, excepting  such  moneys as are required by law to be deposited to the credit of the comptroller, but including such moneys as are thereafter paid into the state treasury by  the  comptroller, shall be deposited by the commissioner of taxation and finance within three days after the receipt  thereof,  either  as  a demand  deposit  or  an interest-bearing time deposit (other than a time certificate of deposit), as he and the  comptroller  may  determine,  in such  banks,  trust companies and industrial banks as in his opinion and the opinion of the comptroller are secure. The moneys so deposited shall be placed to the account of the commissioner of taxation and finance. He shall keep a bankbook in which shall be entered his account  of  deposit in  and  moneys  drawn from the banks and trust companies and industrial banks in which deposits are made by him, which he shall exhibit  to  the comptroller  for  his inspection on the first Tuesday of every month and oftener if required. He shall not draw any moneys from such banks, trust companies or industrial banks unless by checks signed and  countersigned in  the  manner  prescribed by section one hundred one, unless otherwise provided by law. No moneys shall be paid by any such bank, trust company or industrial bank out of any such  deposit  except  upon  such  checks. Moneys  may  be  paid  through  electronic  transfer  in accordance with procedures developed by the commissioner of taxation and finance and the comptroller and consistent with the requirements  of  this  section  for recording  payments.  Such payments through electronic transfer shall be considered, for purposes of this chapter, to be moneys drawn  by  check. Every  such bank, trust company or industrial bank shall transmit to the comptroller monthly statements of all moneys received and paid by it  on account of the commissioner of taxation and finance.   2.  Every  bank,  trust company and industrial bank designated for the deposit of state moneys under the  provisions  of  this  section  shall, before deposits are made:   a.  Execute  and  file with the commissioner of taxation and finance a bond to the state in such form and with such surety or sureties for such sums as may be prescribed and approved by the commissioner  of  taxation and  finance  and comptroller, for the safekeeping and prompt payment of such moneys on legal demand therefor with interest, if any; or   b. In lieu of such surety bond, with the permission of the comptroller and  the  commissioner  of  taxation  and  finance,  deposit  with   the comptroller outstanding unmatured:  (1)  bonds  or  notes of the United States of America, or obligations, the payment of which is guaranteed by the United States of America,  (2) bonds or notes of the state of New York,  (3) bonds or notes of any county, town, city, village,  fire  district or  school districts in the state of New York authorized to be issued by law,  (4) bonds of the Port of New York Authority of any year,  (5) bonds of the Buffalo and Fort Erie Public Bridge Authority,  (6) bonds of the Triborough bridge and tunnel authority,  (7) bonds or notes of the New York state thruway authority,  (8) bonds,  notes  or  other  obligations  of  any  municipal  housing authority  in  the  state  of  New  York authorized to be issued by law, provided such bonds,  notes  or  other  obligations  qualify  under  the provisions of section forty-nine of the public housing law,  (9) bonds or notes of the Power Authority of the state of New York,  (10) bonds or notes of the Niagara Frontier Port Authority,  (11)  bonds  or  notes  of the Dormitory Authority of the state of New York,  (12) bonds or notes of the New York state bridge authority,  (13) bonds or notes issued for any of the corporate  purposes  of  the New York state housing finance agency,  (14)  bonds  or  notes  of  the  Metropolitan  Commuter Transportation Authority,  (15) bonds or notes of the New York State Pure Waters  Authority,  for which the commissioner of taxation and finance and the comptroller shall deliver  a  certificate  of  deposit  containing  the conditions of such deposit,  (16) bonds or notes of the Niagara Frontier Transportation Authority,  (17) bonds or notes of the Rochester-Genesee  Regional  Transportation Authority,  (18) bonds or notes of the Capital District Transportation Authority,  (19)  bonds  or  notes of the Central New York Regional Transportation Authority,   20 Bonds or notes of the New York state project finance agency,  (21) Bonds or notes of the municipal assistance  corporation  for  the city of New York,  (22)  bonds  or  notes issued for any of the corporate purposes of the New York state medical care facilities finance  agency,  for  which  the commissioner of taxation and finance and the comptroller shall deliver a certificate of deposit containing the conditions of such deposit, or  (23) irrevocable letters of credit issued by a federal home loan bank.   c. With the permission of the comptroller and commissioner of taxation and  finance  execute  and  file  with  the commissioner of taxation and finance an undertaking to the effect that such bank,  trust  company  or industrial bank will safely keep and promptly pay over all such deposits on  legal  demand  therefor  with interest, if any, and as collateral to such undertaking deposit with  the  comptroller  a  certified  check  or checks  drawn  on  and  certified by the federal reserve bank within the state payable to his order in such amount or amounts as shall be  agreed upon by the comptroller and the depositary.   3.  Notwithstanding  any other general or special law, no bonds, notes or other obligations, except as above described, shall  be  accepted  as security  for  moneys  deposited pursuant to this section or section one hundred six of  this  chapter.  No  general  or  special  law  which  in substance  or  in effect authorizes or requires the deposit of specified bonds, notes or other obligations with any public  officer  or  body  of this  state  for  any  purpose  for  which the deposit of bonds or other obligations of this state  may  be  authorized  or  required,  shall  be construed to authorize or require the acceptance of such bonds, notes or other  obligations  as  security  for  moneys deposited pursuant to this section or section one hundred six of this chapter.   4. The comptroller and the commissioner of taxation and  finance  may, in  their  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 and the commissioner of taxation and finance for  the  safe keeping and prompt payment of such moneys on legal demand therefor with interest, if any, and the comptroller and the commissioner of taxation and finance 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.   5.  On  the  withdrawal  of  all moneys from any such depositary and a closing and settlement of  the  account  thereof,  the  commissioner  of taxation and finance and the comptroller may in their discretion certify  to  such  settlement  and  direct  the  release  of  such  surety  bond, undertaking, certified  check  or  checks,  or  other  security  to  the obligors or owner or owners entitled thereto.   6.  The  state  comptroller,  public  authorities  or  public  benefit corporations of the state, and the commissioner of taxation and  finance may  deposit  public  funds  with a bank, trust company or national bank located in a banking development district designated pursuant to section ninety-six-d of the banking law. Subject to an  agreement  between  such body or officer and such bank, trust company or national bank located in a  banking  development district, any such deposits made by the state or any of its public authorities or public benefit corporations may earn  a fixed  interest  rate  which  is  at or below such banking institution's posted two year certificate of deposit rate.