New York Laws
Title 2 - General Provisions Relating to Municipal Assistance Corporations
3013 - Moneys of a Municipal Assistance Corporation.

§ 3013. Moneys of a municipal assistance corporation. 1. All moneys of
a corporation from whatever source derived may be paid to the treasurer
of the corporation and be deposited forthwith in a bank or banks in the
state designated by such corporation. The moneys in such account may be
paid by the treasurer or other agent duly designated by the corporation
on requisition of the chairman of the board of directors of the
municipal assistance corporation or of such person or persons as the
corporation may authorize to make such requisitions. All deposits of
such moneys, may, if required by the corporation, be secured by
obligations of the United States or of the state of New York of a market
value equal at all times to the amount of the deposit and all banks and
trust companies are authorized to give such security for such deposits,
provided, however, that no funds or accounts held in the capital reserve
fund may be invested in obligations of or guaranteed by the municipality
being assisted or of any of its agencies. Such obligations may either be
deposited with the treasurer or be held by a trustee or agent
satisfactory to the corporation. The comptroller and his legally
authorized representatives are authorized and empowered from time to
time to examine the accounts and books of the corporation, including its
receipts, disbursements, contracts, leases, sinking funds, investments
and any other records and papers relating to its financial standing.

2. Subject to the provisions of subdivision three of this section, any
moneys of a corporation, including the proceeds of notes or bonds, not
required for immediate use may be invested in obligations of the
municipality being assisted or in obligations of the state or federal
government, obligations of the principal of and interest on which are
guaranteed by such municipality, the state or federal government, or
obligations of agencies of such municipality, of the state or of the
federal government which may, from time to time, be legally purchased by
savings banks of the state as investment of funds belonging to them, or
in secured time deposit or other interest-bearing accounts secured by
such obligations; provided, however, that no funds held in a capital
reserve fund may be invested in obligations of or guaranteed by the
municipality being assisted or of any of its agencies.

3. A corporation shall have power to contract with holders of any of
its notes or bonds as to the custody, collection, securing, investment,
and payment of any moneys of the corporation, of any moneys held in
trust or otherwise for the payment of notes or bonds, and to carry out
such contract. Moneys held in trust or otherwise for the payment of
notes or bonds or in any way to secure notes or bonds or notes and
deposits of such moneys may be secured in the same manner as moneys of
the corporation, and all banks and trust companies are authorized to
give such security for such deposits.

4. Subject to the provisions of any contract with noteholders or
bondholders and to the approval of the comptroller, the corporation
shall prescribe a system of accounts.