2023 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.