2015 New York Laws
BNK - Banking
Article 3 - (Banking) BANKS AND TRUST COMPANIES
107-A - Security for public deposits.

 107-a. Security for public deposits. 1. As used in this section, the
  following terms shall have the following meanings:
(a)  "Public  depositary".  A bank, trust company or other depositary,
  whether state or federally chartered,  authorized  to  accept  and  hold
  deposits of public funds under the laws of this state.
(b) "Public funds". Funds of a political subdivision.
(c)   "Political   subdivision".  Any  municipal  corporation,  school
  district,  board   of   cooperative   educational   services,   district
  corporation,  special  improvement district governed by a separate board
  of commissioners or a public library.
(d) "Public deposits". Deposits of public funds in a public depositary
  which are available for all  uses  generally  permitted  by  the  public
  depositary  to  the  depositing  political  subdivision for actually and
  finally collected funds under the public depositary's account  agreement
  or policies.
2.  Whenever  a  political  subdivision  is required by any general or
  special law to obtain a pledge of assets or other security from a public
  depositary for its public deposits and such  political  subdivision  has
  entered into a written agreement with such public depositary relating to
  such public deposits and has provided written notice in a form specified
  by  such  written  agreement  to  the  public  depositary of such public
  deposits, the public depositary shall comply with the provisions of such
  law at the time it  accepts  any  public  deposits  from  the  political
  subdivision;  provided,  however,  that  where the public depositary and
  political subdivision have agreed in writing as to the maximum amount of
  security which such depositary shall provide, and the terms,  conditions
  and  timing  of  the  provisions  of  security pursuant thereto, and the
  depositary has at all times complied with such agreement,  it  shall  be
  deemed  to  have complied with the provisions of such law for so long as
  it shall comply with such agreement.