Section 1859. Deposit, investment and accounting of moneys of the authority

1.  All  moneys of the authority, from whatever source derived, shall be
  paid to the commissioner  of  taxation  and  finance  as  agent  of  the
  authority,  who  shall  not commingle such moneys with any other moneys.
  Such moneys shall be deposited in a separate bank account  or  accounts.
  Such bank account or accounts known as the "atomic and space development
  operating  fund"  are  hereby  continued  and  shall be known and hereby
  designated as the energy research and development operating fund.    The
  moneys in such fund may be expended for payment of any and all costs and
  expenditures  as  required  for the corporate purposes of the authority;
  provided, until such time as the state of New York is reimbursed in full
  for all moneys repayable to the state by the authority, all expenditures
  from this fund shall be subject to the prior approval of the director of
  the budget of the state of New York.  The moneys in such fund when  made
  available shall be paid out on check of the commissioner of taxation and
  finance on requisition of the chairman of the authority or of such other
  person  as  the  authority shall authorize to make such requisition. All
  deposits of such moneys  shall,  if  required  by  the  commissioner  of
  taxation  and finance or the authority, be secured by obligations of the
  United States or of the state of New York of a market value equal at all
  times to the amount of the deposit and all banks and trust companies are
  authorized to give such security for such deposits.
    2. Notwithstanding the provisions of subdivision one of this  section,
  the  authority  shall  have  power,  subject  to  the  approval  of  the
  commissioner of taxation and finance, to contract with  the  holders  of
  any  of  its  bonds  or  notes, as to the custody, collection, securing,
  investment and payment of any moneys of the authority, or of any  moneys
  held  in  trust or otherwise for the payment of bonds or notes or in any
  way to secure notes or bonds,  and  to  carry  out  any  such  contract.
  Moneys  held  in trust or otherwise for the payment of bonds or notes or
  in any way to secure notes or bonds and deposits of such moneys  may  be
  secured in the same manner as moneys of the authority, and all banks and
  trust companies are authorized to give such security for such deposits.
    3.  Any moneys of the authority not required for immediate use may, at
  the discretion of the authority, be  invested  by  the  commissioner  of
  taxation and finance in obligations of the state or of the United States
  of  America,  obligations  the  principal  and  interest  of  which  are
  guaranteed by the state or the United States of America or  certificates
  of deposit of banks or trust companies in this state.  The authority may
  also  allocate  to one or more reserve funds such moneys or other assets
  of the authority as the authority may deem necessary  or  convenient  to
  carry  out  its  corporate purposes and to exercise its corporate powers
  and, upon direction by the authority, the commissioner of  taxation  and
  finance  shall  invest  all  or  part  of the moneys in any such fund in
  securities in which moneys of the authority not required  for  immediate
  use may be invested or in securities in which the trustee or trustees of
  any  public  retirement  system  or pension fund shall have the power to
  invest the moneys thereof pursuant to article four-a of  the  retirement
  and  social  security  law,  in  each  case in such securities as may be
  specifically designated by the authority. Each reserve fund  established
  pursuant  to this subdivision shall be deemed a separate fund as defined
  in and for purposes of article  four-a  of  the  retirement  and  social
  security  law.  All  certificates  of  deposit  in  which  moneys of the
  authority are invested pursuant to this subdivision shall,  if  required
  by the commissioner of taxation and finance or the authority, be secured
  in  the  same manner as moneys of the authority, and all banks and trust
  companies are authorized to give such security for such certificates.

    4. Subject to the provisions of  any  contract  with  bondholders  and
  noteholders  and to the approval of the comptroller, the authority shall
  prescribe a system of accounts.