§ 1681 — Moneys of the authority

New York § 1681

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: Dormitory Authority
• Art. 8: Miscellaneous Authorities

Text

§ 1681. Moneys of the authority. 1. The moneys of the authority shall,\nexcept as otherwise provided in this section, be deposited in a general\naccount and such other accounts as the authority may deem necessary for\nthe transaction of its business and shall be paid out on checks signed\nby the chairman of the authority or by such other person or persons as\nthe authority may authorize.\n 2. All moneys of the authority derived from state appropriations or\nthe sale of bonds and all moneys constituting reserve funds shall be\npaid to the comptroller of the state as agent of the authority, who\nshall not commingle such moneys with other moneys. Such moneys shall be\ndeposited in a separate bank account or accounts. The moneys in such\naccounts shall be paid out on check of the comptroller on requisition of\nthe chairman of the authority or of such other person or persons as the\nauthority may authorize to make such requisitions. All deposits of such\nmoneys shall, if required by the comptroller or the authority, be\nsecured by obligations of the United States of America or of the state\nof New York of a market value equal at all times to the amount of the\ndeposit and all banks and trust companies are authorized to give such\nsecurity for such deposits.\n 3. The authority shall have power notwithstanding the provisions of\nthis title, to contract with or for the benefit of the holders of any of\nits bonds as to the custody, collection, securing, investment and\npayment of any moneys of the authority, or any moneys held in trust or\notherwise for the payment of bonds or in any way to secure bonds, and to\ncarry out any such contract notwithstanding that such contract may be\ninconsistent with other provisions of this title. In any contract with\nor for the benefit of the holders of any of its bonds, the authority may\npledge or assign any moneys payable or to become payable to the\nauthority and, upon notification by the authority to any public officer\ndirected or authorized by law to pay to the authority any moneys so\npledged or assigned of the existence and the terms and conditions of\nsuch pledge or assignment, such public officer shall thereafter pay any\nsuch moneys otherwise payable directly to the authority in accordance\nwith the terms of such pledge and assignment. Moneys held in trust or\notherwise for the payment of bonds or in any way to secure bonds and\ndeposits of such moneys may be secured in the same manner as moneys of\nthe authority, and all banks and trust companies are authorized to give\nsuch security for such deposits.\n 4. Notwithstanding any other provision of law to the contrary, the\nauthority shall have the power, for more efficient and economic\nmanagement of its affairs, to establish one or more accounts from which\nto pay moneys and into which it may temporarily transfer moneys of the\nauthority held in various accounts or funds for the providing of\ndormitories or other facilities and, subject to such use, maintained for\nthe benefit of various bond and noteholders; provided that (a) any such\naccount or accounts shall be under the exclusive management and control\nof the authority and shall be kept separate and apart from any other\nmoneys or assets of the authority; (b) the authority shall keep a\nseparate accounting and accurate records of the various moneys to be\ntransferred into such account or accounts and that any moneys to be paid\nfrom any such account to meet such liabilities of the authority shall be\nderived from the appropriate account or fund held to meet such\nliability; and (c) any pledge or security interest created for the\nbenefit of others in the moneys to be transferred into any such account\nshall continue to exist while such moneys are in such account until such\nmoneys are paid by the authority for the appropriate contractual\nliability and, prior to such payment by the authority, such moneys so\ntransferred shall not be subject to the claims of others who were not\npreviously the beneficiary of any such pledge or security interest.\n 5. The comptroller of the state and his legally authorized\nrepresentatives are hereby authorized and empowered from time to time to\nexamine the accounts and books of the authority, including its receipts,\ndisbursements, contracts, sinking funds, investments and any other\nmatters relating to its financial standing.\n