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This entry was published on 2014-09-22
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General powers of the fund; administration of the fund
§ 658. General powers of the fund; administration of the fund. 1. The
fund shall have the power to borrow money from the property and
liability insurance security fund created by section seven thousand six
hundred three of the insurance law on such terms and conditions as the
superintendent may authorize pursuant to section seven of chapter one of
the laws of nineteen hundred seventy-seven to the extent necessary to
protect the interests of the purchasers and holders of New York
instruments, and to pledge the assets of the fund or any portion thereof
as security for such borrowings.

2. The fund shall have the power to accept contributions or donations
to the fund from any source. The fund shall also have the power to
pursue, realize upon, compromise and otherwise dispose of all rights and
remedies of claimants assigned to the fund pursuant to the provisions of
this article. The proceeds of all such rights and remedies and any other
amounts which the fund may receive from any source shall constitute a
part of the assets of the fund.

3. The fund created by this article shall be separate and apart from
any other fund and from all other state monies, and the faith and credit
of the state of New York is pledged for its safekeeping. The
commissioner of taxation and finance shall be the custodian of the fund
and all disbursements from said fund shall be made by the commissioner
of taxation and finance upon vouchers signed by the superintendent or
his designated deputy. The monies of said fund may be invested by the
commissioner of taxation and finance only in obligations of the United
States or of this state and in interest-bearing certificates of deposit
for a bank or trust company located and authorized to do business in
this state, or of a national bank located in this state, secured by a
pledge of direct obligations of the United States or of the state of New
York in an amount equal to the amount of such certificate of deposit.
The commissioner of taxation and finance may sell any of the obligations
or certificates of deposit in which said fund is invested, if advisable,
for its proper administration or in the best interests of said fund.

4. The expense of administering the fund shall be paid out of the
fund. Prior to the first days of January, April, July and October, there
shall be submitted to the director of the budget for approval an
estimated budget of expenditures for the succeeding three months. There
may not be expended for the purpose of administering the fund more than
the amounts as authorized by the director of the budget. The
superintendent shall serve as administrator of the fund without
additional compensation, but may be allowed and paid from the fund
expenses incurred in the performance of his duties in connection with
the fund. The compensation of those persons employed by the
superintendent, within the amounts approved by the director of the
budget, shall be deemed administration expense payable from the fund.
The superintendent shall make an annual report of the receipts to and
disbursements from the fund, including the cost of administration of the
fund, which report shall be made available to each uninsured transmitter
of money who has made payments into the fund during such year and to any
other person having an interest in the fund.