2006 New York Code - Administration Of Sinking Funds.

 
    §   274.  Administration  of  sinking  funds.  The  comptroller  shall
  administer and manage the several sinking funds of the city  established
  prior to July first, nineteen hundred eighty-one, and shall have custody
  of the securities in such funds. In the administration of such funds the
  comptroller  shall be deemed to be acting in a fiduciary capacity. Where
  moneys of such sinking  funds  are  invested  pursuant  to  section  two
  hundred   seventy-five   of   this  charter,  in  securities  which  are
  obligations  of  the  United  States  or  of  any  agency,  subdivision,
  department,  division  or  instrumentality thereof, or obligations fully
  guaranteed or insured  as  to  interest  and  principal  by  an  agency,
  subdivision,  department,  division  or  instrumentality  of  the United
  States, acting pursuant to a grant of authority from the congress of the
  United  States,  notwithstanding  any  other  provision  of   law,   the
  comptroller  may turn over the physical custody and safekeeping of these
  obligations to (a) any bank or trust company incorporated in this state,
  or (b)any national bank located in this state, or (c) any private banker
  duly authorized by the superintendent of banks of this state  to  engage
  in  business  here.  All such private bankers shall, as private bankers,
  maintain a permanent capital of not less than  one  million  dollars  in
  this  state.  The  comptroller  may  direct  such bank, trust company or
  private banker to register and hold any such securities in its  custody,
  in  the  name  of its nominee. The comptroller may deposit, or authorize
  such bank, trust company or private banker, to deposit, or  arrange  for
  the deposit of, any of such securities with a federal reserve bank to be
  credited  to an account as to which the ownership of, and other interest
  in, such securities may be transferred by entries on the books  of  such
  federal  reserve  bank without physical delivery of any such securities.
  The records of any such bank, trust  company  or  private  banker  shall
  show,  at  all times, the ownership of such obligations, and they shall,
  when held in the possession of  such  bank,  trust  company  or  private
  banker  be,  at  all  times, kept separate from the assets of such bank,
  trust company or private  banker.  When  any  such  obligations  are  so
  registered in the name of a nominee, such bank, trust company or private
  banker shall be absolutely liable for any loss occasioned by the acts of
  such nominee with respect to such obligations.