2023 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 business days after the receipt thereof, either
as a demand deposit or an interest-bearing time deposit  (other  than  a
time  certificate  of  deposit), as the commissioner and the comptroller
may determine, in such banks, trust companies and industrial banks as in
the opinion of the commissioner 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.  The  commissioner  shall  keep  a
bankbook  in  which  shall  be  entered  their account of deposit in and
moneys drawn from the banks and trust companies and industrial banks  in
which deposits are made by the commissioner, which they shall exhibit to
the  comptroller  for inspection on the first Tuesday of every month and
oftener if required. The commissioner 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.