§ 550. Unemployment insurance fund. 1. Composition and investment. (a)
The unemployment insurance fund shall be continued. It shall consist of
all contributions, interest, penalties and monies from the re-employment
service fund pursuant to section five hundred eighty-one-b of this
article received and paid into the fund, and of moneys credited to this
state pursuant to section nine hundred three of the federal social
security act, of property and securities acquired by and through the use
of moneys belonging to the fund, and of interest earned thereon. All
money in the fund, immediately upon receipt, shall be deposited or
invested in the obligations of the "Unemployment Trust Fund" of the
United States government or its authorized agent, so long as said trust
fund exists, notwithstanding any other statutory provision to the
contrary. The commissioner shall requisition from the unemployment trust
fund necessary amounts from time to time.

(b) Notwithstanding any other provision of this article, any moneys
credited to the state pursuant to section nine hundred three of the
federal social security act for federal fiscal years two thousand, two
thousand one and two thousand two, shall be transferred into the
unemployment administration fund established pursuant to section five
hundred fifty-one of this title. These moneys are to be used only to pay
expenses incurred by the state for the administration of the
unemployment insurance law and are not to be used for the payment of
unemployment compensation or for the administration of state public
employment offices.

2. Custodian of funds. The state commissioner of taxation and finance
and the state comptroller shall be the custodians of the funds received
upon requisition by the industrial commissioner from the unemployment
trust fund and, subject to audit by the state comptroller, the
industrial commissioner shall direct the disbursement thereof. The state
commissioner of taxation and finance, notwithstanding any other
provision of law, may for the purpose of such disbursement authorize any
depository of the fund to make payments out of any moneys therein upon
drafts on the fund issued by the industrial commissioner and
countersigned by the state comptroller. The state commissioner of
taxation and finance may deposit any portion of such funds which he
deems not needed for immediate use in the manner and subject to all the
provisions of law respecting the deposit of other state funds by him.
Interest earned by such portion of such funds deposited by the state
commissioner of taxation and finance shall be collected by him and
placed to the credit of the fund.

3. Fund sole source of benefits. The fund shall be administered in
trust and shall be used solely to pay benefits, except that subject to
the limitations therein contained moneys credited to this fund pursuant
to section nine hundred three of the federal social security act may
upon an appropriation duly made by the legislature be used for the
administration of the unemployment insurance law and shall for such
purpose and to the extent required be transferred to the administration
fund established under this article. All payments shall be made upon
vouchers drawn on the fund by the commissioner in accordance with
procedures established by him. The fund shall be the sole and exclusive
source for the payment of benefits which shall be due and payable only
to the extent that contributions and other payments to the fund with
increments thereon, actually collected and credited to the fund and not
otherwise appropriated or allocated, are available therefor.

4. Non-liability of state. The state of New York undertakes the
administration of the fund without any liability on the part of the
state beyond the amount of moneys received through allotment from any
agency of the United States.