§ 702. Federal aid; custody and payment of funds. 1. The department of
taxation and finance is designated as custodian of all federal-aid funds
allotted to the state for the purposes of this article by the United
States.

2. Such funds shall be payable only on the audit and warrant of the
comptroller on the certificate of the commissioner as provided in
section one hundred ten of the state finance law.

3. Subject to the rules and regulations of the commissioner, such
funds may be allocated to any municipal corporation, including the city
of New York, and to any health district for the use of such municipal
corporation or local health district in carrying out the purposes of
such act of the congress.