Section 1313. Deposit and disposition of revenues

(a) All revenue collected
  by  the commissioner from the taxes imposed pursuant to the authority of
  this article or former article two-E of the general city  law  shall  be
  deposited  daily  with  such  responsible banks, banking houses or trust
  companies, as may be designated by the state comptroller, to the  credit
  of  the  comptroller,  in trust for the city of New York or the New York
  city transitional finance  authority,  as  their  interests  may  appear
  pursuant  to  this  section.  Such  deposits  shall be kept in trust and
  separate and apart from all  other  moneys  in  the  possession  of  the
  comptroller.  The  comptroller  shall require adequate security from all
  such depositories of such revenue collected by the commissioner.
    (b) The comptroller shall  retain  in  the  comptroller's  hands  such
  amount  as the commissioner may determine to be necessary for refunds in
  respect to the taxes imposed pursuant to the authority of  this  article
  or former article two-E of the general city law and for reasonable costs
  of  the  commissioner in administering, collecting and distributing such
  taxes, out of which the comptroller shall pay any refunds of such  taxes
  to  which  taxpayers shall be entitled under any law enacted pursuant to
  the authority of this article or former article  two-E  of  the  general
  city law.
    (c)  Subject  to the provisions of subsection (g) of this section, the
  comptroller, after reserving such refund  fund  and  such  costs  shall,
  commencing  on or before the fifteenth day of each month, pay to the New
  York city transitional finance authority on a daily basis the balance of
  taxes imposed pursuant to  the  authority  of  this  article  or  former
  article two-E of the general city law to be applied by the authority, in
  the  following  order  of  priority:  first  pursuant to the authority's
  contracts with  bondholders,  then  to  pay  the  authority's  operating
  expenses   not   otherwise  provided  for,  and  then  pursuant  to  the
  authority's agreements with the city, which agreements shall require the
  authority to transfer the balance of such taxes  not  required  to  meet
  contractual  or  other  obligations  of  the  authority  to  the city as
  frequently as practicable; except that the comptroller shall:
    (1) pay to the state department of  social  services  that  amount  of
  overpayments  of  the  taxes  imposed  pursuant to the authority of this
  article or former article two-E of the general city law and the interest
  on such amount which is certified to the comptroller by the commissioner
  as the amount to  be  credited  against  past-due  support  pursuant  to
  subdivision six of section one hundred seventy-one-c of this chapter;
    (2)  pay  to  the New York state higher education services corporation
  that amount of  overpayments  of  the  taxes  imposed  pursuant  to  the
  authority  of  this  article or former article two-E of the general city
  law  and  the  interest  on  such  amount  which  is  certified  to  the
  comptroller by the commissioner as the amount to be credited against the
  amount  of defaults in repayment of guaranteed student loans pursuant to
  subdivision five of section one hundred seventy-one-d of this chapter;
    (3) pay to the state university of New York or the city university  of
  New  York  respectively that amount of overpayments of the taxes imposed
  pursuant to the authority of this article or former article two-E of the
  general city law and the interest on such amount which is  certified  to
  the comptroller by the commissioner as the amount to be credited against
  the  amount  of  defaults in repayment of state or city university loans
  pursuant to subdivision six of section one hundred seventy-one-e of this
  chapter;
    (4) notwithstanding any  provision  of  law,  credit  to  the  revenue
  arrearage account, pursuant to section ninety-one-a of the state finance
  law,  that  amount  of overpayments of the taxes imposed pursuant to the
  authority of this article or former article two-E of  the  general  city

  law  and  the  interest  on  such  amount  which  is  certified  to  the
  comptroller by the commissioner as the amount to be credited  against  a
  past-due  legally  enforceable  debt  owed to a state agency pursuant to
  paragraph (a) of subdivision six of section one hundred seventy-one-f of
  this  chapter,  provided,  however,  the comptroller shall credit to the
  special offset fiduciary account, pursuant to  section  ninety-one-c  of
  the  state finance law, any such amount creditable as a liability as set
  forth in paragraph  (b)  of  subdivision  six  of  section  one  hundred
  seventy-one-f of this chapter;
    (5)  pay  to  the  city of New York that amount of overpayments of tax
  imposed pursuant to the authority of this article and  the  interest  on
  such amount which is certified to the comptroller by the commissioner as
  the  amount to be credited against city of New York tax warrant judgment
  debt pursuant to section one hundred seventy-one-l of this chapter; and
    (6) pay to a non-obligated spouse that amount of  overpayment  of  tax
  imposed  pursuant  to  the  authority  of this article or former article
  two-E of the general city law and the interest on such amount which  has
  been credited pursuant to section one hundred seventy-one-c, one hundred
  seventy-one-d,  one  hundred seventy-one-e, one hundred seventy-one-f or
  one hundred seventy-one-l of this chapter and which is certified to  the
  comptroller  by  the  commissioner  as the amount due such non-obligated
  spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
  hundred  fifty-one  of  this chapter, and the comptroller shall deduct a
  like amount which, the comptroller shall pay into the  treasury  to  the
  credit  of  the  general  fund, from amounts subsequently payable to the
  office of temporary and disability assistance, the state  university  of
  New York, the city university of New York, the higher education services
  corporation,   or  the  revenue  arrearage  account  or  special  offset
  fiduciary account pursuant to section ninety-one-a  or  ninety-one-c  of
  the  state  finance law, as the case may be, whichever had been credited
  the amount originally withheld from such overpayment.
    (d) The amount deducted under  subsection  (b)  of  this  section  for
  administering,  collecting  and  distributing  such  taxes  during  such
  monthly period shall be paid by the comptroller into the general fund of
  the state treasury to the credit of the state purposes account therein.
    (e) The first payment to such chief fiscal officer shall be made on or
  before March fifteenth,  nineteen  hundred  seventy-six,  which  payment
  shall  represent  the  balance of revenue after provision for refund and
  such reasonable costs, with respect  to  taxes  collected  from  January
  first,  nineteen  hundred  seventy-six  through  February  twenty-ninth,
  nineteen hundred seventy-six. Subsequent payments shall be  made  on  or
  before  April  fifteenth, nineteen hundred seventy-six, and on or before
  the fifteenth  day  of  each  succeeding  month  thereafter,  and  shall
  represent  the  balance  of  revenue with respect to taxes collected the
  preceding calendar months.
    (f) The amounts so payable under this section shall  be  certified  to
  the  comptroller  by  the  commissioner  or the commissioner's delegate,
  either of whom shall not be held  liable  for  any  inaccuracy  in  such
  certificate.  Where the amount so paid over to such chief fiscal officer
  is  more  or  less  than  the  amount  then due such city, the amount of
  overpayment or underpayment shall be certified to the comptroller by the
  commissioner or the commissioner's delegate, either of whom shall not be
  held liable for any  inaccuracy  in  such  certificate.  The  amount  of
  overpayment  or underpayment shall be so certified to the comptroller as
  soon  after  the  discovery  of  the  overpayment  or  underpayment   as
  reasonably  possible  and subsequent payments by the comptroller to such
  chief fiscal officer shall be adjusted by subtracting the amount of  any
  such  overpayment from, or by adding the amount of any such underpayment

  to  such  number  of  subsequent  payments  and  distributions  as   the
  comptroller  and  the  commissioner shall consider reasonable in view of
  the amount of the overpayment or underpayment and all  other  facts  and
  circumstances.
    (g)  The  balance  payable  to  the New York city transitional finance
  authority pursuant to this section shall instead be paid  to  the  chief
  fiscal  officer of the city of New York unless and until the comptroller
  has received from such authority a notice, which shall be conclusive and
  upon which the comptroller may rely without further inquiry,  that  such
  authority  has  incurred obligations payable by it, whether for borrowed
  money, operating expenses or otherwise. On and after the  date  of  such
  notice  and  until  such date as the authority shall have no obligations
  outstanding, the city shall have no right, title or interest  in  or  to
  the  taxes,  except  as  provided in the authority's agreements with the
  city.
    (h) Notwithstanding any provision of state or local law, ordinance  or
  resolution  to  the  contrary,  if  the  commissioner  of  health timely
  certifies to the commissioner that a city having  a  population  of  one
  million  or  more  which  imposes  tax pursuant to the authority of this
  article properly exercised its option pursuant to  section  two  of  the
  chapter  of  the  laws of two thousand five which added this subdivision
  that such city be reimbursed  for  medical  assistance  expenditures  as
  provided  in  such  section  two of such chapter, the commissioner shall
  make and certify the calculations and  the  comptroller  shall,  on  the
  fifteenth  day  of  each month, starting in January, two thousand eight,
  intercept and pay monthly amounts of revenue from taxes imposed in  such
  a  city  pursuant  to  the  authority  of  this  article, as provided in
  subdivision (g) of section twelve hundred sixty-one of this chapter.