N.Y. PBH Law § 395-A

§ 395-a. Designation of depository. The board of health of any\nconsolidated health district may designate by resolution one or more\nbanks or trust companies in which the moneys paid to the president of\nthe board as provided herein shall be deposited. Notwithstanding the\nprovisions of section four hundred ten of the education law, in a\nconsolidated health district in which there is but one bank or trust\ncompany, the bank or trust company so designated as depository may be\none of which members of such board of health are officers, directors or\nstockholders. Such designation and deposit of such moneys shall release\nthe president of the board from any liability for loss of such moneys by\nreason of the default or insolvency of any such depository. The board of\nhealth may require any bank or trust company so designated as a\ndepository in which such moneys are on deposit or are to be deposited to\ndeliver to such board a surety bond payable to the consolidated health\ndistrict, executed by a surety company authorized to transact business\nin this state and securing to such district the payment of such\ndeposits; or in lieu of such a surety bond, such board may require any\nsuch bank or trust company to deposit with such board obligations of the\nUnited States of America, of the state of New York or of any county,\ntown, city, village or school district of the state of New York as\nsecurity for such moneys so deposited, but such obligations shall be\nsubject to the approval of such board and shall be held for safekeeping\nat such place and under such conditions as such board may determine.\n