2020 New York Laws
STF - State Finance
Article 6 - Funds of the State
78 - New York State College Choice Tuition Savings Program Trust Fund.

Universal Citation: NY State Fin L § 78 (2020)
§  78.  New  York  state  college choice tuition savings program trust
fund.  1. There is hereby established in the sole custody of  the  state
comptroller  a  special  fund  to be known as the New York state college
choice tuition savings program trust fund. All payments from  such  fund
shall be made in accordance with article fourteen-A of the education law
and the memorandum of understanding entered into pursuant thereto on the
audit of the state comptroller.
  2. The fund shall be a trust fund and shall consist of a trust account
and  an  operating  account.  The  trust  account  shall include amounts
received by the New York state college choice  tuition  savings  program
pursuant  to  tuition  savings agreements, administrative charges, fees,
and all other amounts received by the program from  other  sources,  and
interest and investment income earned by the trust fund. The comptroller
shall,  from  time to time, make transfers from the trust account to the
operating account for the immediate payment of obligations under tuition
savings agreements, operating expenses and administrative costs  of  the
New  York  state  college choice tuition savings program. Administrative
costs shall be paid out of the operating account according to the  terms
and  conditions  established  pursuant  to the provisions of section six
hundred ninety-five-c of the education law.
  3. (a) The comptroller, as trustee, shall invest  the  assets  of  the
trust fund in investments authorized by article four-A of the retirement
and social security law, provided however, that:

(i) the provisions of paragraph (a) of subdivision two of section one hundred seventy-seven of the retirement and social security law shall not apply except for the first clause of subparagraph (ii) of such paragraph; and

(ii) notwithstanding the provisions of subdivision seven of section one hundred seventy-seven of the retirement and social security law or any other law to the contrary, the assets of the trust fund may be invested in any funding agreement issued in accordance with section three thousand two hundred twenty-two of the insurance law by a domestic life insurance company or a foreign life insurance company doing business in this state, subject to the following:

(1) such a funding agreement may provide for a guaranteed minimum rate of return;

(2) such a funding agreement may be allocated as either a separate account or a general account of the issuer, as the comptroller may decide;

(3) total investments of the trust fund pursuant to this paragraph in any funding agreements issued by a single life insurance company which are allocated as a general account of the issuer shall not, in the aggregate, exceed three hundred fifty million dollars; and

(4) no assets of the trust fund shall be invested in any such funding agreement unless, at the time of such investment, the general obligations or financial strength of the issuer have received either the highest or second highest rating by two nationally recognized rating services or by one nationally recognized rating service in the event that only one such service rates such obligations.

(b) Trust fund assets shall be kept separate and shall not be commingled with other assets, except as provided herein. The comptroller may enter into contracts to provide for investment advice and management, custodial services, and other professional services for the administration and investment of the program. Administrative fees, costs and expenses, including investment fees and expenses, shall be paid from the assets of the fund. 4. The comptroller shall provide for the administration of the trust fund, including maintaining participant records and accounts, and providing annual audited reports. The comptroller may enter into contracts to provide administrative services and reporting.

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