N.Y. STF Law § 78-A

§ 78-a. New York higher education loan program variable rate default\nreserve fund. 1. There is hereby created and established in the sole\ncustody of the state comptroller a special fund to be known as the New\nYork higher education loan program variable rate default reserve fund\nwhich shall be for the exclusive benefit of the holders of variable rate\neducation loans originated pursuant to the New York higher education\nloan program codified in part V of article fourteen of the education\nlaw, other than variable rate education loans described in subdivision\nsix of section two thousand four hundred five-a of the public\nauthorities law.\n 2. Amounts held in this fund shall not be, or be deemed, funds of the\nstate or funds under the management of the state or the higher education\nservices corporation. The obligations of the fund shall not be, or be\ndeemed, the debts or obligations of the state and the state shall not\nbe, or be deemed, in any way obligated to: any holder of any such\neducation loan; any holder of bonds issued pursuant to the public\nauthorities law for the purposes of the New York higher education loan\nprogram; any fiduciary or provider of any credit facility, liquidity\nfacility or interest rate exchange agreement with respect to such bonds;\nor any other creditor of this fund.\n 3. Such fund shall consist of all moneys received by the higher\neducation services corporation pursuant to paragraph (b) of subdivision\nseven of section six hundred ninety-two of the education law, in\nconnection with variable rate education loans made under part V of\narticle fourteen of the education law, other than variable rate\neducation loans described in subdivision six of section two thousand\nfour hundred five-a of the public authorities law. The state\ncomptroller, at the request of the higher education services\ncorporation, shall establish accounts within the fund and priorities of\npayment from such accounts and shall invest the fund in compliance with\napplicable state laws concerning the investment of public funds. Moneys\nin the fund shall be segregated from all other funds kept by the state\ncomptroller and shall not be used for any other purpose beyond those set\nforth in part V of article fourteen of the education law or in this\nsection.\n 4. The state comptroller shall make payments from the fund in amounts\nand at times required by the higher education services corporation\npursuant to part V of article fourteen of the education law.\nNotwithstanding subdivision one of this section, upon certification by\nthe State of New York mortgage agency that a variable rate education\nloan described in subdivision three of this section has been acquired by\nthe agency or has become subject to the agreement of the agency to\nacquire such education loan, the state comptroller shall make transfers\nfrom the monies in the variable rate New York higher education loan\nprogram default reserve fund to the corporation for deposit into the\nstate of New York mortgage agency New York higher education loan program\ndefault reserve fund created by subdivision six of section two thousand\nfour hundred five-a of the public authorities law in amounts certified\nby the agency and the corporation as properly allocable to such\neducation loan.\n