Section 6-107.1. Payments to city contractors to be made by electronic funds transfer

a. Definitions. For purposes of this section:
    (1)  "Contract"  means  any  written  agreement,  purchase  order   or
  instrument  whereby the city is committed to expend or does expend funds
  in an amount greater than twenty-five thousand  dollars  in  return  for
  work,   labor,   services,   supplies,   equipment,  materials,  or  any
  combination of the foregoing;
    (2)  "Contractor"  means  any   business,   individual,   partnership,
  corporation,  firm,  company, or other form of doing business to which a
  contract has been awarded; and
    (3) "Electronic funds transfer" means any  transfer  of  funds,  other
  than   a  transaction  originated  by  check,  draft  or  similar  paper
  instrument,  which  is  initiated  through   an   electronic   terminal,
  telephonic  instrument  or  computer  or  magnetic  tape so as to order,
  instruct or authorize a financial institution  to  debit  or  credit  an
  account.
    b.  Notwithstanding  any  other  provision of law, except as otherwise
  provided in this section all payments made by the city of  New  York  to
  any contractor of the city shall be paid by electronic funds transfer.
    c.  Each  contractor  shall,  prior  to the first payment made under a
  contract to which this law applies, designate one financial  institution
  or  other  authorized  payment  agent  and  provide  the commissioner of
  finance information necessary for the contractor to  receive  electronic
  funds  transfer  payments  through  the  financial  institution or other
  authorized payment agent so designated.
    d. (1) The commissioner of finance and  the  comptroller  may  jointly
  issue  standards  pursuant  to  which contracting agencies may waive the
  application of this section to payments: (i) for individuals or  classes
  of  individuals  for  whom  compliance  imposes  a  hardship;  (ii)  for
  classifications or types of checks; or (iii) in other  circumstances  as
  may be necessary in the interest of the city.
    (2)  In  addition,  an  agency  head may waive the application of this
  section to payments on contracts entered into pursuant to section  three
  hundred   fifteen   of  the  city  charter  and  any  rules  promulgated
  thereunder.
    e. The crediting of the amount of a payment to the appropriate account
  on the books of a financial  institution  or  other  authorized  payment
  agent  designated  by  a  contractor under this section shall constitute
  full satisfaction by the city of New York for the amount of the payment.
    f. The department of  finance  shall  assure  the  confidentiality  of
  information  supplied  by  contractors  in  effecting  electronic  funds
  transfers to the full extent provided by law.
    g. This section shall apply to any payments made by the  city  of  New
  York  on  contracts entered into on or after January first, two thousand
  eight to a contractor of the city. Further, this section shall apply  to
  any  payments  made  by  the  city of New York on contracts entered into
  prior to January first,  two  thousand  eight,  provided  that  where  a
  contractor  refuses  to  supply some portion of the required information
  necessary to effect payment by electronic  funds  transfer,  the  agency
  head  may  waive  the application of this section where the need for the
  goods, services or construction is such that it is in  the  interest  of
  the city to exempt the contractor from the requirements of this section.