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This entry was published on 2014-09-22
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SECTION 105
Deposits in banks
State Finance (STF) CHAPTER 56, ARTICLE 7
§ 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 days after the receipt thereof, either as a
demand deposit or an interest-bearing time deposit (other than a time
certificate of deposit), as he and the comptroller may determine, in
such banks, trust companies and industrial banks as in his opinion 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. He
shall keep a bankbook in which shall be entered his account of deposit
in and moneys drawn from the banks and trust companies and industrial
banks in which deposits are made by him, which he shall exhibit to the
comptroller for his inspection on the first Tuesday of every month and
oftener if required. He 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.