2023 New York Laws › STF - State Finance › Article 6 - Funds of the State › 98-A - Investment of General Funds, Bond Proceeds, and Other Funds Not Immediately Required.

§  98-a.  Investment  of general funds, bond proceeds, and other funds
not immediately required. 1. Except as otherwise provided in subdivision
two of this section, any moneys in the general  fund  of  the  state  or
moneys received from the sale of any bonds or notes issued by the state,
any  moneys in any fund or account of the state, heretofore or hereafter
established, the investment of which is  not  otherwise  authorized  and
which  are  not immediately required may be invested by the comptroller.
Such moneys may be  invested  only  in  obligations  of  the  categories
specified  in  subdivisions one to five, both inclusive, and subdivision
seven,  subdivision  fourteen,  as  added  by  chapters  seven   hundred
ninety-seven and nine hundred thirty-two of the laws of nineteen hundred
sixty-three,  respectively,  subdivisions fifteen, sixteen and seventeen
of section ninety-eight of this article, maturing or redeemable  at  the
option of the holder within twelve years of the date of such investment,
subdivisions   two-a,   eighteen,   nineteen   and   twenty  of  section
ninety-eight of this article or in a certificate of deposit of a bank or
trust company in this state. Any certificate of deposit shall  be  fully
secured  by  the  issuer thereof depositing with the comptroller stocks,
bonds, or notes of any county, town, city,  village,  fire  district  or
school district of this state issued pursuant to law and maturing within
five  years  from  the  date of issuance of such certificate of deposit,
bonds or notes or direct or guaranteed obligation of the  United  States
of  America  or  its  agencies  or of the state of New York or bonds and
notes issued  for  any  of  the  corporate  purposes  of  the  municipal
assistance  corporation  for  the city of New York in an amount equal to
the  amount  of  such  certificate  of  deposit.  Any  bonds,  notes  or
certificates  of deposit purchased with moneys of the general fund shall
be available always to pay any lawful appropriation in force. Any bonds,
notes or certificates of deposit purchased with moneys received from the
sale of any bonds or notes issued by the state shall be available always
for the purposes or purpose for which such bonds or notes  were  issued.
Any bonds, notes or certificates of deposit purchased with moneys of any
other  funds  shall  be  available always for the purpose for which such
fund was created. Unless otherwise required by law, income  received  on
any  moneys  invested  pursuant to this section shall be credited to the
fund or funds from which such moneys were invested,  provided,  however,
the  comptroller is hereby precluded from crediting interest earnings to
funds/accounts which:
(a) are funded entirely from the general fund; or
(b) are, or were, authorized to receive temporary  loans  pursuant  to
subdivision five of section four of the state finance law; or
(c)  are  federal  funds, except such funds which are required to earn
such interest pursuant to a court order or federal law or regulation; or
(d) are agency funds, except such funds which  are  held  pending  the
outcome  of  litigation  or  are required to earn interest pursuant to a
court  order,  contractual  obligation,  or  state  or  federal  law  or
regulation, or are appropriated.
Notwithstanding  the  provisions of paragraph (b) of this subdivision,
the comptroller shall credit or charge interest to  fund/accounts  which
are  authorized  to receive temporary loans if so requested by the state
department or division responsible for such fund/account  within  thirty
days  of  the beginning of each fiscal year or thirty days following the
final  approval  of  any  bill  containing  language  authorizing   such
temporary  loans,  whichever  is later, and interest must be credited or
charged from the first day of such fiscal year. Within ten days  of  the
beginning of each month, the comptroller shall credit or charge interest
to  such  funds/accounts  based  upon  the  average daily balance of the
preceding month of such funds/accounts and shall provide notification to

the director of the budget and the chairs  of  the  senate  finance  and
assembly ways and means committees of such funds/accounts to be credited
or charged interest.
Provided,  however, that income received from the investment of moneys
of the local assistance account, the  state  purposes  account  and  the
capital projects fund may be credited in whole or in part to one or more
of  such  funds  to  the  extent  necessary  to reimburse first instance
appropriations for interest on temporary obligations issued on behalf of
the fund or funds to be credited. Notwithstanding any other provision of
this section or  of  any  other  general  or  special  law,  all  moneys
available  and retained on deposit for the payment of lottery prizes may
be invested in obligations by the comptroller as herein provided, except
that such obligations need not mature or be redeemable at the option  of
the  holder  within  seven  years of the date of such investment. Income
received from such investments may be used for  the  payment  of  prizes
awarded  and  made  payable  in  more than one payment, including prizes
awarded and made payable throughout the lifetime of  the  lottery  prize
winner.
2. Notwithstanding any provision of law to the contrary, investment of
bond  proceeds  and other funds not immediately required may be invested
by the comptroller in linked deposits pursuant  to  article  fifteen  of
this  chapter.  If  any moneys are invested by the comptroller in linked
deposits pursuant to article fifteen of this  chapter,  the  comptroller
shall compute the monthly earnings for all funds, other than the general
fund, as if no such moneys had been invested in such linked deposits.