Section 78-B. New York higher education loan program fixed 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 fixed rate default reserve fund which
  shall be for  the  exclusive  benefit  of  the  holders  of  fixed  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 fixed 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  fixed  rate  education  loans,  other  than fixed 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 fixed 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 fixed 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.