N.Y. PBA Law § 2927

§ 2927. Investment of funds by public authorities and public benefit\ncorporations in deposits insured by the federal deposit insurance\ncorporation.\n Notwithstanding any inconsistent provision of this chapter or any\nother general, special or local law, every corporation whether or not\nsuch corporation is otherwise governed by this chapter, may temporarily\ninvest moneys not required for immediate expenditure in accordance with\nthe following conditions:\n 1. the moneys are invested through a bank or trust company located and\nauthorized to do business in this state selected by the corporation;\n 2. the selected bank or trust company arranges for the redeposit of\nthe moneys in certificates of deposit and other deposit accounts in one\nor more banking institutions, as defined in section nine-r of the\nbanking law, for the account of the corporation;\n 3. the full amount of principal and accrued interest of each such\ndeposit is insured by the federal deposit insurance corporation;\n 4. the selected bank or trust company in this state acts as custodian\nfor the corporation with respect to the funds redeposited pursuant to\nthis section; and\n 5. at the same time that the corporation's moneys are redeposited\npursuant to this section, the selected bank or trust company in this\nstate receives an amount of deposits from customers of other financial\ninstitutions equal to or greater than the amount of the moneys invested\nby the corporation through the selected bank or trust company in this\nstate.\n