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This entry was published on 2014-09-22
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SECTION 106
Deposit of moneys by state officers, state institutions and charitable and benevolent institutions
State Finance (STF) CHAPTER 56, ARTICLE 7
§ 106. Deposit of moneys by state officers, state institutions and
charitable and benevolent institutions. Such moneys received by the
commissioner of taxation and finance as are now deposited to the credit
of the comptroller pursuant to statute, and thereafter paid into the
state treasury, shall be deposited by him or her to the credit of the
comptroller in such bank or trust company as shall be designated by the
comptroller at such rate of interest, if any, as shall be agreed upon by
the depositary and the comptroller.

All other moneys received by the commissioner of taxation and finance
except as provided in section one hundred five of this article and all
moneys received by any other state officer or other person receiving
moneys belonging to the state, or for which such state officer or other
person may be responsible in his or her official capacity, and all
moneys received by any state institution, except for moneys received
pursuant to a clinical practice plan established pursuant to subdivision
fourteen of section two hundred six of the public health law and all
moneys received from the state by any charitable or benevolent
institution supported in whole or in part by the state, shall be
deposited to his, her, or its credit in such bank or trust company as
shall be designated by the comptroller at such rate of interest, if any,
as shall be agreed upon by the depositary and the comptroller.

Every bank or trust company designated by the comptroller for the
deposit of any such moneys

A. Shall give a bond with sufficient sureties for the security of such
deposit, to be approved by the comptroller and filed in his or her
office,

B. Or shall, in lieu of such surety bond, with the permission of the
comptroller deposit with the comptroller such outstanding unmatured
bonds or notes or such certified check or checks as are described in
section one hundred five of this article. The comptroller may, in his or
her 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 for the safe keeping and prompt payment of such moneys on
legal demand therefor with interest, if any, and the comptroller 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. On the withdrawal of all moneys from
any such depository and a closing and settlement of the account thereof,
the comptroller may in his or her discretion certify to such settlement
and release to the obligor or owner or owners entitled thereto, of such
surety bond, undertaking, certified check or checks, or other security
deposited with him or her.

C. Notwithstanding any other provisions of this section, the
comptroller shall not designate for the deposit of moneys by state
officers, state institutions and charitable and benevolent institutions
supported in whole or in part by the state a banking institution to
which the Community Reinvestment Act of 1977, United States P.L. 95-128,
applies unless such institution shall have received a record of
performance no lower than "satisfactory" as determined under such act in
accordance with section twenty-eight-b of the banking law.

D. In lieu of a security bond as prescribed under subdivision A of
this section or other security as prescribed under subdivision B of this
section, the comptroller may authorize a designated bank or trust
company to arrange for the redeposit of the moneys through a deposit
placement program that meets all of the following conditions:

(1) The designated bank or trust company arranges for the redeposit of
the moneys into deposit accounts with one or more banking institutions,
as defined in section nine-r of the banking law, for the account of the
state, and serves as custodian for the state with respect to the moneys
redeposited into such deposit accounts.

(2) Moneys held by a designated bank or trust company pending
redeposit pursuant to paragraph one of this subdivision that are in
excess of the amount insured by the federal deposit insurance
corporation shall be secured in accordance with subdivision A or B of
this section.

(3) The full amount of the moneys redeposited into deposit accounts
pursuant to paragraph one of this subdivision, plus accrued interest, if
any, shall be insured by the federal deposit insurance corporation.

(4) At the same time that the moneys are redeposited pursuant to
paragraph one of this subdivision, the designated bank or trust company
receives an amount of deposits from customers of other financial
institutions pursuant to the deposit placement program that are at least
equal to the amount of the moneys redeposited by the designated bank or
trust company.

This section shall not apply to any funds held by the superintendent
of financial services in a fiduciary capacity.