Section 78. New York state college choice tuition savings program trust fund

1. There is hereby established in the sole custody of  the  state
  comptroller  a  special  fund  to be known as the New York state college
  choice tuition savings program trust fund. All payments from  such  fund
  shall be made in accordance with article fourteen-A of the education law
  and the memorandum of understanding entered into pursuant thereto on the
  audit of the state comptroller.
    2. The fund shall be a trust fund and shall consist of a trust account
  and  an  operating  account.  The  trust  account  shall include amounts
  received by the New York state college choice  tuition  savings  program
  pursuant  to  tuition  savings agreements, administrative charges, fees,
  and all other amounts received by the program from  other  sources,  and
  interest and investment income earned by the trust fund. The comptroller
  shall,  from  time to time, make transfers from the trust account to the
  operating account for the immediate payment of obligations under tuition
  savings agreements, operating expenses and administrative costs  of  the
  New  York  state  college choice tuition savings program. Administrative
  costs shall be paid out of the operating account according to the  terms
  and  conditions  established  pursuant  to the provisions of section six
  hundred ninety-five-c of the education law.
    3. (a) The comptroller, as trustee, shall invest  the  assets  of  the
  trust fund in investments authorized by article four-A of the retirement
  and social security law, provided however, that:
    (i)  the provisions of paragraph (a) of subdivision two of section one
  hundred seventy-seven of the retirement and social  security  law  shall
  not  apply  except  for  the  first  clause of subparagraph (ii) of such
  paragraph; and
    (ii) notwithstanding the provisions of subdivision  seven  of  section
  one  hundred  seventy-seven of the retirement and social security law or
  any other law to the contrary, the assets  of  the  trust  fund  may  be
  invested  in  any  funding  agreement  issued in accordance with section
  three thousand two hundred twenty-two of the insurance law by a domestic
  life insurance  company  or  a  foreign  life  insurance  company  doing
  business in this state, subject to the following:
    (1) such a funding agreement may provide for a guaranteed minimum rate
  of return;
    (2)  such  a  funding  agreement may be allocated as either a separate
  account or a general account of  the  issuer,  as  the  comptroller  may
  decide;
    (3)  total investments of the trust fund pursuant to this paragraph in
  any funding agreements issued by a single life insurance  company  which
  are  allocated  as  a  general  account  of the issuer shall not, in the
  aggregate, exceed three hundred fifty million dollars; and
    (4) no assets of the trust fund shall be invested in any such  funding
  agreement   unless,   at  the  time  of  such  investment,  the  general
  obligations or financial strength of the issuer have received either the
  highest or second highest rating by  two  nationally  recognized  rating
  services  or  by  one  nationally recognized rating service in the event
  that only one such service rates such obligations.
    (b) Trust fund  assets  shall  be  kept  separate  and  shall  not  be
  commingled with other assets, except as provided herein. The comptroller
  may   enter   into  contracts  to  provide  for  investment  advice  and
  management, custodial services, and other professional services for  the
  administration and investment of the program. Administrative fees, costs
  and expenses, including investment fees and expenses, shall be paid from
  the assets of the fund.
    4.  The  comptroller shall provide for the administration of the trust
  fund,  including  maintaining  participant  records  and  accounts,  and

  providing  annual  audited  reports.  The  comptroller  may  enter  into
  contracts to provide administrative services and reporting.