Section 65. Appointment of fiscal agent; powers and duties

1.
  Notwithstanding any other provisions of this chapter,  the  comptroller,
  on  behalf  of the state, may contract from time to time for a period or
  periods not exceeding ten years each, except in the case of  a  bank  or
  trust  company  agreeing  to  act as issuing, paying and/or tender agent
  with respect to a particular issue of variable interest  rate  bonds  in
  which  case  the comptroller, on behalf of the state, may contract for a
  period not to exceed the term of such particular issue  of  bonds,  with
  one or more banks or trust companies located in the city of New York, to
  act  as  fiscal agent or agents of the state, and for the maintenance of
  an office for the registration, conversion, reconversion and transfer of
  the bonds  and  notes  of  the  state,  including  the  preparation  and
  substitution  of  new  bonds and notes, for the payment of the principal
  thereof and interest thereon, and for  related  services,  and  for  the
  payment  by  the  state of such compensation therefor as the comptroller
  may determine. Any such fiscal agent may, where authorized  pursuant  to
  the  terms  of its contract, accept delivery of obligations purchased by
  the state and  of  securities  deposited  with  the  state  pursuant  to
  sections  one  hundred five and one hundred six of this chapter and hold
  the same in safekeeping, make delivery to purchasers of obligations sold
  by the state, and accept  deposit  of  such  proceeds  of  sale  without
  securing  the  same. Any such contract may also provide that such fiscal
  agent may, upon the written instruction of the comptroller, deposit  any
  obligations  or  securities which it receives pursuant to such contract,
  in an account with a federal reserve bank, to be held in such account in
  the form of entries on the books of the federal reserve bank, and to  be
  transferred  in  the event of any assignment, sale, redemption, maturity
  or other disposition of such obligations or securities,  by  entries  on
  the  books  of  the federal reserve bank. Any such bank or trust company
  shall be responsible to the people of this state for  the  faithful  and
  safe  conduct  of  the  business  of  said  office, for the fidelity and
  integrity of its officers and agents employed in such  office,  and  for
  all  loss or damage which may result from any failure to discharge their
  duties, and for any improper and incorrect discharge  of  those  duties,
  and  shall  save  the  state  free and harmless from any and all loss or
  damage occasioned by or incurred in the performance  of  such  services.
  Any  such  contract may be terminated by the comptroller at any time. In
  the event of any change in any office maintained pursuant  to  any  such
  contract,  the comptroller shall give public notice thereof in such form
  as he may determine appropriate.
    2. The comptroller shall  prescribe  rules  and  regulations  for  the
  registration,  conversion,  reconversion  and  transfer of the bonds and
  notes of the state, including the preparation and  substitution  of  new
  bonds,  for  the  payment of the principal thereof and interest thereon,
  and for other authorized services to be performed by such fiscal  agent.
  Such  rules  and  regulations,  and  all  amendments  thereof,  shall be
  prepared in duplicate, one copy of which shall be filed in the office of
  the department of audit and control and the other in the office  of  the
  department  of  state. A copy thereof may be filed as a public record in
  such other offices as the comptroller  may  determine.  Such  rules  and
  regulations  shall  be obligatory on all persons having any interests in
  bonds and notes of the state heretofore or hereafter issued.