Section 78-A. New York higher education loan program variable rate default reserve fund

1. There is hereby created and  established  in  the  sole
  custody  of  the state comptroller a special fund to be known as the New
  York higher education loan program variable rate  default  reserve  fund
  which shall be for the exclusive benefit of the holders of variable rate
  education  loans  originated  pursuant  to the New York higher education
  loan program codified in part V of article  fourteen  of  the  education
  law,  other  than variable rate education loans described in subdivision
  six  of  section  two  thousand  four  hundred  five-a  of  the   public
  authorities law.
    2.  Amounts held in this fund shall not be, or be deemed, funds of the
  state or funds under the management of the state or the higher education
  services corporation. The obligations of the fund shall not  be,  or  be
  deemed,  the  debts  or obligations of the state and the state shall not
  be, or be deemed, in any way  obligated  to:  any  holder  of  any  such
  education  loan;  any  holder  of  bonds  issued  pursuant to the public
  authorities law for the purposes of the New York higher  education  loan
  program;  any  fiduciary  or  provider of any credit facility, liquidity
  facility or interest rate exchange agreement with respect to such bonds;
  or any other creditor of this fund.
    3. Such fund shall consist  of  all  moneys  received  by  the  higher
  education  services corporation pursuant to paragraph (b) of subdivision
  seven of section  six  hundred  ninety-two  of  the  education  law,  in
  connection  with  variable  rate  education  loans  made under part V of
  article  fourteen  of  the  education  law,  other  than  variable  rate
  education  loans  described  in  subdivision six of section two thousand
  four  hundred  five-a  of  the  public  authorities   law.   The   state
  comptroller,   at   the   request   of  the  higher  education  services
  corporation, shall establish accounts within the fund and priorities  of
  payment  from such accounts and shall invest the fund in compliance with
  applicable state laws concerning the investment of public funds.  Moneys
  in  the  fund shall be segregated from all other funds kept by the state
  comptroller and shall not be used for any other purpose beyond those set
  forth in part V of article fourteen of the  education  law  or  in  this
  section.
    4.  The state comptroller shall make payments from the fund in amounts
  and at times required  by  the  higher  education  services  corporation
  pursuant   to   part  V  of  article  fourteen  of  the  education  law.
  Notwithstanding subdivision one of this section, upon  certification  by
  the  State  of  New  York mortgage agency that a variable rate education
  loan described in subdivision three of this section has been acquired by
  the agency or has become subject to  the  agreement  of  the  agency  to
  acquire  such education loan, the state comptroller shall make transfers
  from the monies in the variable rate  New  York  higher  education  loan
  program  default  reserve  fund  to the corporation for deposit into the
  state of New York mortgage agency New York higher education loan program
  default reserve fund created by subdivision six of section two  thousand
  four  hundred  five-a of the public authorities law in amounts certified
  by the  agency  and  the  corporation  as  properly  allocable  to  such
  education loan.