§ 106 — Deposit of moneys by state officers, state institutions and charitable and benevolent institutions

New York § 106

• Jurisdiction: New York
• Law STF: State Finance
• Art. 7: Accounts and Audits

Text

§ 106. Deposit of moneys by state officers, state institutions and\ncharitable and benevolent institutions. Such moneys received by the\ncommissioner of taxation and finance as are now deposited to the credit\nof the comptroller pursuant to statute, and thereafter paid into the\nstate treasury, shall be deposited by him or her to the credit of the\ncomptroller in such bank or trust company as shall be designated by the\ncomptroller at such rate of interest, if any, as shall be agreed upon by\nthe depositary and the comptroller.\n All other moneys received by the commissioner of taxation and finance\nexcept as provided in section one hundred five of this article and all\nmoneys received by any other state officer or other person receiving\nmoneys belonging to the state, or for which such state officer or other\nperson may be responsible in his or her official capacity, and all\nmoneys received by any state institution, except for moneys received\npursuant to a clinical practice plan established pursuant to subdivision\nfourteen of section two hundred six of the public health law and all\nmoneys received from the state by any charitable or benevolent\ninstitution supported in whole or in part by the state, shall be\ndeposited to his, her, or its credit in such bank or trust company as\nshall be designated by the comptroller at such rate of interest, if any,\nas shall be agreed upon by the depositary and the comptroller.\n Every bank or trust company designated by the comptroller for the\ndeposit of any such moneys\n A. Shall give a bond with sufficient sureties for the security of such\ndeposit, to be approved by the comptroller and filed in his or her\noffice,\n B. Or shall, in lieu of such surety bond, with the permission of the\ncomptroller deposit with the comptroller such outstanding unmatured\nbonds or notes or such certified check or checks as are described in\nsection one hundred five of this article. The comptroller may, in his or\nher discretion, accept and substitute for any surety bond or undertaking\ngiven, pursuant to this section, a bond or undertaking in such form and\nwith other surety or sureties, or other security as required by this\nsection, for such sums as may be prescribed and approved by the\ncomptroller for the safe keeping and prompt payment of such moneys on\nlegal demand therefor with interest, if any, and the comptroller may\nthereupon execute and deliver to the surety or sureties, upon the former\nbond or undertaking, a release of such surety or sureties from any\nliability accruing subsequent to the date of such release. Such release\nshall not relieve such surety or sureties from any obligation for losses\nincurred prior to the date thereof. On the withdrawal of all moneys from\nany such depository and a closing and settlement of the account thereof,\nthe comptroller may in his or her discretion certify to such settlement\nand release to the obligor or owner or owners entitled thereto, of such\nsurety bond, undertaking, certified check or checks, or other security\ndeposited with him or her.\n C. Notwithstanding any other provisions of this section, the\ncomptroller shall not designate for the deposit of moneys by state\nofficers, state institutions and charitable and benevolent institutions\nsupported in whole or in part by the state a banking institution to\nwhich the Community Reinvestment Act of 1977, United States P.L. 95-128,\napplies unless such institution shall have received a record of\nperformance no lower than "satisfactory" as determined under such act in\naccordance with section twenty-eight-b of the banking law.\n D. In lieu of a security bond as prescribed under subdivision A of\nthis section or other security as prescribed under subdivision B of this\nsection, the comptroller may authorize a designated bank or trust\ncompany to arrange for the redeposit of the moneys through a deposit\nplacement program that meets all of the following conditions:\n (1) The designated bank or trust company arranges for the redeposit of\nthe moneys into deposit accounts with one or more banking institutions,\nas defined in section nine-r of the banking law, for the account of the\nstate, and serves as custodian for the state with respect to the moneys\nredeposited into such deposit accounts.\n (2) Moneys held by a designated bank or trust company pending\nredeposit pursuant to paragraph one of this subdivision that are in\nexcess of the amount insured by the federal deposit insurance\ncorporation shall be secured in accordance with subdivision A or B of\nthis section.\n (3) The full amount of the moneys redeposited into deposit accounts\npursuant to paragraph one of this subdivision, plus accrued interest, if\nany, shall be insured by the federal deposit insurance corporation.\n (4) At the same time that the moneys are redeposited pursuant to\nparagraph one of this subdivision, the designated bank or trust company\nreceives an amount of deposits from customers of other financial\ninstitutions pursuant to the deposit placement program that are at least\nequal to the amount of the moneys redeposited by the designated bank or\ntrust company.\n This section shall not apply to any funds held by the superintendent\nof financial services in a fiduciary capacity.\n