§ 98-A — Investment of general funds, bond proceeds, and other funds not immediately required

§ 98-a. Investment of general funds, bond proceeds, and other funds\nnot immediately required. 1. Except as otherwise provided in subdivision\ntwo of this section, any moneys in the general fund of the state or\nmoneys received from the sale of any bonds or notes issued by the state,\nany moneys in any fund or account of the state, heretofore or hereafter\nestablished, the investment of which is not otherwise authorized and\nwhich are not immediately required may be invested by the comptroller.\nSuch moneys may be invested only in obligations of the categories\nspecified in subdivisions one to five, both inclusive, and subdivision\nseven, subdivision fourteen, as added by chapters seven hundred\nninety-seven and nine hundred thirty-two of the laws of nineteen hundred\nsixty-three, respectively, subdivisions fifteen, sixteen and seventeen\nof section ninety-eight of this article, maturing or redeemable at the\noption of the holder within twelve years of the date of such investment,\nsubdivisions two-a, eighteen, nineteen and twenty of section\nninety-eight of this article or in a certificate of deposit of a bank or\ntrust company in this state. Any certificate of deposit shall be fully\nsecured by the issuer thereof depositing with the comptroller stocks,\nbonds, or notes of any county, town, city, village, fire district or\nschool district of this state issued pursuant to law and maturing within\nfive years from the date of issuance of such certificate of deposit,\nbonds or notes or direct or guaranteed obligation of the United States\nof America or its agencies or of the state of New York or bonds and\nnotes issued for any of the corporate purposes of the municipal\nassistance corporation for the city of New York in an amount equal to\nthe amount of such certificate of deposit. Any bonds, notes or\ncertificates of deposit purchased with moneys of the general fund shall\nbe available always to pay any lawful appropriation in force. Any bonds,\nnotes or certificates of deposit purchased with moneys received from the\nsale of any bonds or notes issued by the state shall be available always\nfor the purposes or purpose for which such bonds or notes were issued.\nAny bonds, notes or certificates of deposit purchased with moneys of any\nother funds shall be available always for the purpose for which such\nfund was created. Unless otherwise required by law, income received on\nany moneys invested pursuant to this section shall be credited to the\nfund or funds from which such moneys were invested, provided, however,\nthe comptroller is hereby precluded from crediting interest earnings to\nfunds/accounts which:\n (a) are funded entirely from the general fund; or\n (b) are, or were, authorized to receive temporary loans pursuant to\nsubdivision five of section four of the state finance law; or\n (c) are federal funds, except such funds which are required to earn\nsuch interest pursuant to a court order or federal law or regulation; or\n (d) are agency funds, except such funds which are held pending the\noutcome of litigation or are required to earn interest pursuant to a\ncourt order, contractual obligation, or state or federal law or\nregulation, or are appropriated.\n Notwithstanding the provisions of paragraph (b) of this subdivision,\nthe comptroller shall credit or charge interest to fund/accounts which\nare authorized to receive temporary loans if so requested by the state\ndepartment or division responsible for such fund/account within thirty\ndays of the beginning of each fiscal year or thirty days following the\nfinal approval of any bill containing language authorizing such\ntemporary loans, whichever is later, and interest must be credited or\ncharged from the first day of such fiscal year. Within ten days of the\nbeginning of each month, the comptroller shall credit or charge interest\nto such funds/accounts based upon the average daily balance of the\npreceding month of such funds/accounts and shall provide notification to\nthe director of the budget and the chairs of the senate finance and\nassembly ways and means committees of such funds/accounts to be credited\nor charged interest.\n Provided, however, that income received from the investment of moneys\nof the local assistance account, the state purposes account and the\ncapital projects fund may be credited in whole or in part to one or more\nof such funds to the extent necessary to reimburse first instance\nappropriations for interest on temporary obligations issued on behalf of\nthe fund or funds to be credited. Notwithstanding any other provision of\nthis section or of any other general or special law, all moneys\navailable and retained on deposit for the payment of lottery prizes may\nbe invested in obligations by the comptroller as herein provided, except\nthat such obligations need not mature or be redeemable at the option of\nthe holder within seven years of the date of such investment. Income\nreceived from such investments may be used for the payment of prizes\nawarded and made payable in more than one payment, including prizes\nawarded and made payable throughout the lifetime of the lottery prize\nwinner.\n 2. Notwithstanding any provision of law to the contrary, investment of\nbond proceeds and other funds not immediately required may be invested\nby the comptroller in linked deposits pursuant to article fifteen of\nthis chapter. If any moneys are invested by the comptroller in linked\ndeposits pursuant to article fifteen of this chapter, the comptroller\nshall compute the monthly earnings for all funds, other than the general\nfund, as if no such moneys had been invested in such linked deposits.\n