§ 98-a. Investment of general funds, bond proceeds, and other funds
not immediately required. 1. Except as otherwise provided in subdivision
two of this section, any moneys in the general fund of the state or
moneys received from the sale of any bonds or notes issued by the state,
any moneys in any fund or account of the state, heretofore or hereafter
established, the investment of which is not otherwise authorized and
which are not immediately required may be invested by the comptroller.
Such moneys may be invested only in obligations of the categories
specified in subdivisions one to five, both inclusive, and subdivision
seven, subdivision fourteen, as added by chapters seven hundred
ninety-seven and nine hundred thirty-two of the laws of nineteen hundred
sixty-three, respectively, subdivisions fifteen, sixteen and seventeen
of section ninety-eight of this article, maturing or redeemable at the
option of the holder within twelve years of the date of such investment,
subdivisions two-a, eighteen, nineteen and twenty of section
ninety-eight of this article or in a certificate of deposit of a bank or
trust company in this state. Any certificate of deposit shall be fully
secured by the issuer thereof depositing with the comptroller stocks,
bonds, or notes of any county, town, city, village, fire district or
school district of this state issued pursuant to law and maturing within
five years from the date of issuance of such certificate of deposit,
bonds or notes or direct or guaranteed obligation of the United States
of America or its agencies or of the state of New York or bonds and
notes issued for any of the corporate purposes of the municipal
assistance corporation for the city of New York in an amount equal to
the amount of such certificate of deposit. Any bonds, notes or
certificates of deposit purchased with moneys of the general fund shall
be available always to pay any lawful appropriation in force. Any bonds,
notes or certificates of deposit purchased with moneys received from the
sale of any bonds or notes issued by the state shall be available always
for the purposes or purpose for which such bonds or notes were issued.
Any bonds, notes or certificates of deposit purchased with moneys of any
other funds shall be available always for the purpose for which such
fund was created. Unless otherwise required by law, income received on
any moneys invested pursuant to this section shall be credited to the
fund or funds from which such moneys were invested, provided, however,
the comptroller is hereby precluded from crediting interest earnings to
funds/accounts which:

(a) are funded entirely from the general fund; or

(b) are, or were, authorized to receive temporary loans pursuant to
subdivision five of section four of the state finance law; or

(c) are federal funds, except such funds which are required to earn
such interest pursuant to a court order or federal law or regulation; or

(d) are agency funds, except such funds which are held pending the
outcome of litigation or are required to earn interest pursuant to a
court order, contractual obligation, or state or federal law or
regulation, or are appropriated.

Notwithstanding the provisions of paragraph (b) of this subdivision,
the comptroller shall credit or charge interest to fund/accounts which
are authorized to receive temporary loans if so requested by the state
department or division responsible for such fund/account within thirty
days of the beginning of each fiscal year or thirty days following the
final approval of any bill containing language authorizing such
temporary loans, whichever is later, and interest must be credited or
charged from the first day of such fiscal year. Within ten days of the
beginning of each month, the comptroller shall credit or charge interest
to such funds/accounts based upon the average daily balance of the
preceding month of such funds/accounts and shall provide notification to
the director of the budget and the chairs of the senate finance and
assembly ways and means committees of such funds/accounts to be credited
or charged interest.

Provided, however, that income received from the investment of moneys
of the local assistance account, the state purposes account and the
capital projects fund may be credited in whole or in part to one or more
of such funds to the extent necessary to reimburse first instance
appropriations for interest on temporary obligations issued on behalf of
the fund or funds to be credited. Notwithstanding any other provision of
this section or of any other general or special law, all moneys
available and retained on deposit for the payment of lottery prizes may
be invested in obligations by the comptroller as herein provided, except
that such obligations need not mature or be redeemable at the option of
the holder within seven years of the date of such investment. Income
received from such investments may be used for the payment of prizes
awarded and made payable in more than one payment, including prizes
awarded and made payable throughout the lifetime of the lottery prize
winner.

2. Notwithstanding any provision of law to the contrary, investment of
bond proceeds and other funds not immediately required may be invested
by the comptroller in linked deposits pursuant to article fifteen of
this chapter. If any moneys are invested by the comptroller in linked
deposits pursuant to article fifteen of this chapter, the comptroller
shall compute the monthly earnings for all funds, other than the general
fund, as if no such moneys had been invested in such linked deposits.