§ 105 — Deposits in banks

§ 105. Deposits in banks. 1. All moneys received by the commissioner\nof taxation and finance on account of the state, excepting such moneys\nas are required by law to be deposited to the credit of the comptroller,\nbut including such moneys as are thereafter paid into the state treasury\nby the comptroller, shall be deposited by the commissioner of taxation\nand finance within three business days after the receipt thereof, either\nas a demand deposit or an interest-bearing time deposit (other than a\ntime certificate of deposit), as the commissioner and the comptroller\nmay determine, in such banks, trust companies and industrial banks as in\nthe opinion of the commissioner and the opinion of the comptroller are\nsecure. The moneys so deposited shall be placed to the account of the\ncommissioner of taxation and finance. The commissioner shall keep a\nbankbook in which shall be entered their account of deposit in and\nmoneys drawn from the banks and trust companies and industrial banks in\nwhich deposits are made by the commissioner, which they shall exhibit to\nthe comptroller for inspection on the first Tuesday of every month and\noftener if required. The commissioner shall not draw any moneys from\nsuch banks, trust companies or industrial banks unless by checks signed\nand countersigned in the manner prescribed by section one hundred one,\nunless otherwise provided by law. No moneys shall be paid by any such\nbank, trust company or industrial bank out of any such deposit except\nupon such checks. Moneys may be paid through electronic transfer in\naccordance with procedures developed by the commissioner of taxation and\nfinance and the comptroller and consistent with the requirements of this\nsection for recording payments. Such payments through electronic\ntransfer shall be considered, for purposes of this chapter, to be moneys\ndrawn by check. Every such bank, trust company or industrial bank shall\ntransmit to the comptroller monthly statements of all moneys received\nand paid by it on account of the commissioner of taxation and finance.\n 2. Every bank, trust company and industrial bank designated for the\ndeposit of state moneys under the provisions of this section shall,\nbefore deposits are made:\n a. Execute and file with the commissioner of taxation and finance a\nbond to the state in such form and with such surety or sureties for such\nsums as may be prescribed and approved by the commissioner of taxation\nand finance and comptroller, for the safekeeping and prompt payment of\nsuch moneys on legal demand therefor with interest, if any; or\n b. In lieu of such surety bond, with the permission of the comptroller\nand the commissioner of taxation and finance, deposit with the\ncomptroller outstanding unmatured:\n (1) bonds or notes of the United States of America, or obligations,\nthe payment of which is guaranteed by the United States of America,\n (2) bonds or notes of the state of New York,\n (3) bonds or notes of any county, town, city, village, fire district\nor school districts in the state of New York authorized to be issued by\nlaw,\n (4) bonds of the Port of New York Authority of any year,\n (5) bonds of the Buffalo and Fort Erie Public Bridge Authority,\n (6) bonds of the Triborough bridge and tunnel authority,\n (7) bonds or notes of the New York state thruway authority,\n (8) bonds, notes or other obligations of any municipal housing\nauthority in the state of New York authorized to be issued by law,\nprovided such bonds, notes or other obligations qualify under the\nprovisions of section forty-nine of the public housing law,\n (9) bonds or notes of the Power Authority of the state of New York,\n (10) bonds or notes of the Niagara Frontier Port Authority,\n (11) bonds or notes of the Dormitory Authority of the state of New\nYork,\n (12) bonds or notes of the New York state bridge authority,\n (13) bonds or notes issued for any of the corporate purposes of the\nNew York state housing finance agency,\n (14) bonds or notes of the Metropolitan Commuter Transportation\nAuthority,\n (15) bonds or notes of the New York State Pure Waters Authority, for\nwhich the commissioner of taxation and finance and the comptroller shall\ndeliver a certificate of deposit containing the conditions of such\ndeposit,\n (16) bonds or notes of the Niagara Frontier Transportation Authority,\n (17) bonds or notes of the Rochester-Genesee Regional Transportation\nAuthority,\n (18) bonds or notes of the Capital District Transportation Authority,\n (19) bonds or notes of the Central New York Regional Transportation\nAuthority,\n 20 Bonds or notes of the New York state project finance agency,\n (21) Bonds or notes of the municipal assistance corporation for the\ncity of New York,\n (22) bonds or notes issued for any of the corporate purposes of the\nNew York state medical care facilities finance agency, for which the\ncommissioner of taxation and finance and the comptroller shall deliver a\ncertificate of deposit containing the conditions of such deposit, or\n (23) irrevocable letters of credit issued by a federal home loan bank.\n c. With the permission of the comptroller and commissioner of taxation\nand finance execute and file with the commissioner of taxation and\nfinance an undertaking to the effect that such bank, trust company or\nindustrial bank will safely keep and promptly pay over all such deposits\non legal demand therefor with interest, if any, and as collateral to\nsuch undertaking deposit with the comptroller a certified check or\nchecks drawn on and certified by the federal reserve bank within the\nstate payable to his order in such amount or amounts as shall be agreed\nupon by the comptroller and the depositary.\n 3. Notwithstanding any other general or special law, no bonds, notes\nor other obligations, except as above described, shall be accepted as\nsecurity for moneys deposited pursuant to this section or section one\nhundred six of this chapter. No general or special law which in\nsubstance or in effect authorizes or requires the deposit of specified\nbonds, notes or other obligations with any public officer or body of\nthis state for any purpose for which the deposit of bonds or other\nobligations of this state may be authorized or required, shall be\nconstrued to authorize or require the acceptance of such bonds, notes or\nother obligations as security for moneys deposited pursuant to this\nsection or section one hundred six of this chapter.\n 4. The comptroller and the commissioner of taxation and finance may,\nin their discretion, accept and substitute for any surety bond or\nundertaking given, pursuant to this section, a bond or undertaking in\nsuch form and with other surety or sureties, or other security as\nrequired by this section, for such sums as may be prescribed and\napproved by the comptroller and the commissioner of taxation and finance\nfor the safe keeping and prompt payment of such moneys on legal demand\ntherefor with interest, if any, and the comptroller and the commissioner\nof taxation and finance may thereupon execute and deliver to the surety\nor sureties, upon the former bond or undertaking, a release of such\nsurety or sureties from any liability accruing subsequent to the date of\nsuch release. Such release shall not relieve such surety or sureties\nfrom any obligation for losses incurred prior to the date thereof.\n 5. On the withdrawal of all moneys from any such depositary and a\nclosing and settlement of the account thereof, the commissioner of\ntaxation and finance and the comptroller may in their discretion certify\nto such settlement and direct the release of such surety bond,\nundertaking, certified check or checks, or other security to the\nobligors or owner or owners entitled thereto.\n 6. The state comptroller, public authorities or public benefit\ncorporations of the state, and the commissioner of taxation and finance\nmay deposit public funds with a bank, trust company or national bank\nlocated in a banking development district designated pursuant to section\nninety-six-d of the banking law. Subject to an agreement between such\nbody or officer and such bank, trust company or national bank located in\na banking development district, any such deposits made by the state or\nany of its public authorities or public benefit corporations may earn a\nfixed interest rate which is at or below such banking institution's\nposted two year certificate of deposit rate.\n