Section 105. Deposits in banks

1. All moneys received by the commissioner
  of taxation and finance on account of the state, excepting  such  moneys
  as are required by law to be deposited to the credit of the comptroller,
  but including such moneys as are thereafter paid into the state treasury
  by  the  comptroller, shall be deposited by the commissioner of taxation
  and finance within three days after the receipt  thereof,  either  as  a
  demand  deposit  or  an interest-bearing time deposit (other than a time
  certificate of deposit), as he and the  comptroller  may  determine,  in
  such  banks,  trust companies and industrial banks as in his opinion and
  the opinion of the comptroller are secure. The moneys so deposited shall
  be placed to the account of the commissioner of taxation and finance. He
  shall keep a bankbook in which shall be entered his account  of  deposit
  in  and  moneys  drawn from the banks and trust companies and industrial
  banks in which deposits are made by him, which he shall exhibit  to  the
  comptroller  for  his inspection on the first Tuesday of every month and
  oftener if required. He shall not draw any moneys from such banks, trust
  companies or industrial banks unless by checks signed and  countersigned
  in  the  manner  prescribed by section one hundred one, unless otherwise
  provided by law. No moneys shall be paid by any such bank, trust company
  or industrial bank out of any such  deposit  except  upon  such  checks.
  Moneys  may  be  paid  through  electronic  transfer  in accordance with
  procedures developed by the commissioner of taxation and finance and the
  comptroller and consistent with the requirements  of  this  section  for
  recording  payments.  Such payments through electronic transfer shall be
  considered, for purposes of this chapter, to be moneys drawn  by  check.
  Every  such bank, trust company or industrial bank shall transmit to the
  comptroller monthly statements of all moneys received and paid by it  on
  account of the commissioner of taxation and finance.
    2.  Every  bank,  trust company and industrial bank designated for the
  deposit of state moneys under the  provisions  of  this  section  shall,
  before deposits are made:
    a.  Execute  and  file with the commissioner of taxation and finance a
  bond to the state in such form and with such surety or sureties for such
  sums as may be prescribed and approved by the commissioner  of  taxation
  and  finance  and comptroller, for the safekeeping and prompt payment of
  such moneys on legal demand therefor with interest, if any; or
    b. In lieu of such surety bond, with the permission of the comptroller
  and  the  commissioner  of  taxation  and  finance,  deposit  with   the
  comptroller outstanding unmatured:
    (1)  bonds  or  notes of the United States of America, or obligations,
  the payment of which is guaranteed by the United States of America,
    (2) bonds or notes of the state of New York,
    (3) bonds or notes of any county, town, city, village,  fire  district
  or  school districts in the state of New York authorized to be issued by
  law,
    (4) bonds of the Port of New York Authority of any year,
    (5) bonds of the Buffalo and Fort Erie Public Bridge Authority,
    (6) bonds of the Triborough bridge and tunnel authority,
    (7) bonds or notes of the New York state thruway authority,
    (8) bonds,  notes  or  other  obligations  of  any  municipal  housing
  authority  in  the  state  of  New  York authorized to be issued by law,
  provided such bonds,  notes  or  other  obligations  qualify  under  the
  provisions of section forty-nine of the public housing law,
    (9) bonds or notes of the Power Authority of the state of New York,
    (10) bonds or notes of the Niagara Frontier Port Authority,
    (11)  bonds  or  notes  of the Dormitory Authority of the state of New
  York,
    (12) bonds or notes of the New York state bridge authority,

    (13) bonds or notes issued for any of the corporate  purposes  of  the
  New York state housing finance agency,
    (14)  bonds  or  notes  of  the  Metropolitan  Commuter Transportation
  Authority,
    (15) bonds or notes of the New York State Pure Waters  Authority,  for
  which the commissioner of taxation and finance and the comptroller shall
  deliver  a  certificate  of  deposit  containing  the conditions of such
  deposit,
    (16) bonds or notes of the Niagara Frontier Transportation Authority,
    (17) bonds or notes of the Rochester-Genesee  Regional  Transportation
  Authority,
    (18) bonds or notes of the Capital District Transportation Authority,
    (19)  bonds  or  notes of the Central New York Regional Transportation
  Authority,
    20 Bonds or notes of the New York state project finance agency,
    (21) Bonds or notes of the municipal assistance  corporation  for  the
  city of New York,
    (22)  bonds  or  notes issued for any of the corporate purposes of the
  New York state medical care facilities finance  agency,  for  which  the
  commissioner of taxation and finance and the comptroller shall deliver a
  certificate of deposit containing the conditions of such deposit, or
    (23) irrevocable letters of credit issued by a federal home loan bank.
    c. With the permission of the comptroller and commissioner of taxation
  and  finance  execute  and  file  with  the commissioner of taxation and
  finance an undertaking to the effect that such bank,  trust  company  or
  industrial bank will safely keep and promptly pay over all such deposits
  on  legal  demand  therefor  with interest, if any, and as collateral to
  such undertaking deposit with  the  comptroller  a  certified  check  or
  checks  drawn  on  and  certified by the federal reserve bank within the
  state payable to his order in such amount or amounts as shall be  agreed
  upon by the comptroller and the depositary.
    3.  Notwithstanding  any other general or special law, no bonds, notes
  or other obligations, except as above described, shall  be  accepted  as
  security  for  moneys  deposited pursuant to this section or section one
  hundred six of  this  chapter.  No  general  or  special  law  which  in
  substance  or  in effect authorizes or requires the deposit of specified
  bonds, notes or other obligations with any public  officer  or  body  of
  this  state  for  any  purpose  for  which the deposit of bonds or other
  obligations of this state  may  be  authorized  or  required,  shall  be
  construed to authorize or require the acceptance of such bonds, notes or
  other  obligations  as  security  for  moneys deposited pursuant to this
  section or section one hundred six of this chapter.
    4. The comptroller and the commissioner of taxation and  finance  may,
  in  their  discretion,  accept  and  substitute  for  any surety bond or
  undertaking given, pursuant to this section, a bond  or  undertaking  in
  such  form  and  with  other  surety  or  sureties, or other security as
  required by this section,  for  such  sums  as  may  be  prescribed  and
  approved by the comptroller and the commissioner of taxation and finance
  for  the  safe keeping and prompt payment of such moneys on legal demand
  therefor with interest, if any, and the comptroller and the commissioner
  of taxation and finance may thereupon execute and deliver to the  surety
  or  sureties,  upon  the  former  bond or undertaking, a release of such
  surety or sureties from any liability accruing subsequent to the date of
  such release. Such release shall not relieve  such  surety  or  sureties
  from any obligation for losses incurred prior to the date thereof.
    5.  On  the  withdrawal  of  all moneys from any such depositary and a
  closing and settlement of  the  account  thereof,  the  commissioner  of
  taxation and finance and the comptroller may in their discretion certify

  to  such  settlement  and  direct  the  release  of  such  surety  bond,
  undertaking, certified  check  or  checks,  or  other  security  to  the
  obligors or owner or owners entitled thereto.
    6.  The  state  comptroller,  public  authorities  or  public  benefit
  corporations of the state, and the commissioner of taxation and  finance
  may  deposit  public  funds  with a bank, trust company or national bank
  located in a banking development district designated pursuant to section
  ninety-six-d of the banking law. Subject to an  agreement  between  such
  body or officer and such bank, trust company or national bank located in
  a  banking  development district, any such deposits made by the state or
  any of its public authorities or public benefit corporations may earn  a
  fixed  interest  rate  which  is  at or below such banking institution's
  posted two year certificate of deposit rate.