§ 78-b. New York higher education loan program fixed rate default
reserve fund. 1. There is hereby created and established in the sole
custody of the state comptroller a special fund to be known as the New
York higher education loan program fixed rate default reserve fund which
shall be for the exclusive benefit of the holders of fixed rate
education loans originated pursuant to the New York higher education
loan program codified in part V of article fourteen of the education
law, other than fixed rate education loans described in subdivision six
of section two thousand four hundred five-a of the public authorities
law.

2. Amounts held in this fund shall not be, or be deemed, funds of the
state or funds under the management of the state or the higher education
services corporation. The obligations of the fund shall not be, or be
deemed, the debts or obligations of the state and the state shall not
be, or be deemed, in any way obligated to: any holder of any such
education loan; any holder of bonds issued pursuant to the public
authorities law for the purposes of the New York higher education loan
program; any fiduciary or provider of any credit facility, liquidity
facility or interest rate exchange agreement with respect to such bonds;
or any other creditor of this fund.

3. Such fund shall consist of all moneys received by the higher
education services corporation pursuant to paragraph (b) of subdivision
seven of section six hundred ninety-two of the education law, in
connection with fixed rate education loans, other than fixed rate
education loans described in subdivision six of section two thousand
four hundred five-a of the public authorities law. The state
comptroller, at the request of the higher education services
corporation, shall establish accounts within the fund and priorities of
payment from such accounts and shall invest the fund in compliance with
applicable state laws concerning the investment of public funds. Moneys
in the fund shall be segregated from all other funds kept by the state
comptroller and shall not be used for any other purpose beyond those set
forth in part V of article fourteen of the education law or in this
section.

4. The state comptroller shall make payments from the fund in amounts
and at times required by the higher education services corporation
pursuant to part V of article fourteen of the education law.
Notwithstanding subdivision one of this section, upon certification by
the state of New York mortgage agency that a fixed rate education loan
described in subdivision three of this section has been acquired by the
agency or has become subject to the agreement of the agency to acquire
such education loan, the state comptroller shall make transfers from the
monies in the fixed rate New York higher education loan program default
reserve fund to the corporation for deposit into the state of New York
mortgage agency New York higher education loan program default reserve
fund created by subdivision six of section two thousand four hundred
five-a of the public authorities law in amounts certified by the agency
and the corporation as properly allocable to such education loan.