Section 98-A. Investment of general funds, bond proceeds, and other funds not immediately required

1. Except as otherwise provided in subdivision
  two of this section, any moneys in the general  fund  of  the  state  or
  moneys received from the sale of any bonds or notes issued by the state,
  any  moneys in any fund or account of the state, heretofore or hereafter
  established, the investment of which is  not  otherwise  authorized  and
  which  are  not immediately required may be invested by the comptroller.
  Such moneys may be  invested  only  in  obligations  of  the  categories
  specified  in  subdivisions one to five, both inclusive, and subdivision
  seven,  subdivision  fourteen,  as  added  by  chapters  seven   hundred
  ninety-seven and nine hundred thirty-two of the laws of nineteen hundred
  sixty-three,  respectively,  subdivisions fifteen, sixteen and seventeen
  of section ninety-eight of this article, maturing or redeemable  at  the
  option of the holder within twelve years of the date of such investment,
  subdivisions   two-a,   eighteen,   nineteen   and   twenty  of  section
  ninety-eight of this article or in a certificate of deposit of a bank or
  trust company in this state. Any certificate of deposit shall  be  fully
  secured  by  the  issuer thereof depositing with the comptroller stocks,
  bonds, or notes of any county, town, city,  village,  fire  district  or
  school district of this state issued pursuant to law and maturing within
  five  years  from  the  date of issuance of such certificate of deposit,
  bonds or notes or direct or guaranteed obligation of the  United  States
  of  America  or  its  agencies  or of the state of New York or bonds and
  notes issued  for  any  of  the  corporate  purposes  of  the  municipal
  assistance  corporation  for  the city of New York in an amount equal to
  the  amount  of  such  certificate  of  deposit.  Any  bonds,  notes  or
  certificates  of deposit purchased with moneys of the general fund shall
  be available always to pay any lawful appropriation in force. Any bonds,
  notes or certificates of deposit purchased with moneys received from the
  sale of any bonds or notes issued by the state shall be available always
  for the purposes or purpose for which such bonds or notes  were  issued.
  Any bonds, notes or certificates of deposit purchased with moneys of any
  other  funds  shall  be  available always for the purpose for which such
  fund was created. Unless otherwise required by law, income  received  on
  any  moneys  invested  pursuant to this section shall be credited to the
  fund or funds from which such moneys were invested,  provided,  however,
  the  comptroller is hereby precluded from crediting interest earnings to
  funds/accounts which:
    (a) are funded entirely from the general fund; or
    (b) are, or were, authorized to receive temporary  loans  pursuant  to
  subdivision five of section four of the state finance law; or
    (c)  are  federal  funds, except such funds which are required to earn
  such interest pursuant to a court order or federal law or regulation; or
    (d) are agency funds, except such funds which  are  held  pending  the
  outcome  of  litigation  or  are required to earn interest pursuant to a
  court  order,  contractual  obligation,  or  state  or  federal  law  or
  regulation, or are appropriated.
    Notwithstanding  the  provisions of paragraph (b) of this subdivision,
  the comptroller shall credit or charge interest to  fund/accounts  which
  are  authorized  to receive temporary loans if so requested by the state
  department or division responsible for such fund/account  within  thirty
  days  of  the beginning of each fiscal year or thirty days following the
  final  approval  of  any  bill  containing  language  authorizing   such
  temporary  loans,  whichever  is later, and interest must be credited or
  charged from the first day of such fiscal year. Within ten days  of  the
  beginning of each month, the comptroller shall credit or charge interest
  to  such  funds/accounts  based  upon  the  average daily balance of the
  preceding month of such funds/accounts and shall provide notification to

  the director of the budget and the chairs  of  the  senate  finance  and
  assembly ways and means committees of such funds/accounts to be credited
  or charged interest.
    Provided,  however, that income received from the investment of moneys
  of the local assistance account, the  state  purposes  account  and  the
  capital projects fund may be credited in whole or in part to one or more
  of  such  funds  to  the  extent  necessary  to reimburse first instance
  appropriations for interest on temporary obligations issued on behalf of
  the fund or funds to be credited. Notwithstanding any other provision of
  this section or  of  any  other  general  or  special  law,  all  moneys
  available  and retained on deposit for the payment of lottery prizes may
  be invested in obligations by the comptroller as herein provided, except
  that such obligations need not mature or be redeemable at the option  of
  the  holder  within  seven  years of the date of such investment. Income
  received from such investments may be used for  the  payment  of  prizes
  awarded  and  made  payable  in  more than one payment, including prizes
  awarded and made payable throughout the lifetime of  the  lottery  prize
  winner.
    2. Notwithstanding any provision of law to the contrary, investment of
  bond  proceeds  and other funds not immediately required may be invested
  by the comptroller in linked deposits pursuant  to  article  fifteen  of
  this  chapter.  If  any moneys are invested by the comptroller in linked
  deposits pursuant to article fifteen of this  chapter,  the  comptroller
  shall compute the monthly earnings for all funds, other than the general
  fund, as if no such moneys had been invested in such linked deposits.